Nouriel Roubini, also known as “Dr. Doom,” has unequivocally praised the strength of the US economy despite the Federal Reserve’s strict monetary policies. Check out the latest reports about the matter below.

Resilient US economy could be bad news for Fed

During a recent interview with Bloomberg Television, Roubini boldly stated that the US economy is still progressing while other major economies are beginning to shrink.

Roubini was taken aback by the amount of monetary tightening, and yet some economies have remained resilient. However, he is convinced that the most resilient economy is the United States.

On the other hand, the Eurozone is heading towards a shallow recession, and China has a structural problem. Overall, regarding the current state of the global economy, Roubini asserts that the US is unequivocally the brightest spot.

According to Roubini, the strength of the US economy may lead to the Federal Reserve continuing to raise interest rates.

This is due to the fact that a thriving economy indicates that there is still a substantial amount of money circulating, which could hinder the Fed’s efforts to lower inflation to their target of 2%.

Roubini further explains that despite the Fed raising rates to over 5%, the US economy has continued to grow and is currently exceeding expectations in terms of labor and goods markets.

While this is positive news for a smooth transition, it is not ideal for the Fed as it suggests that they may need to raise interest rates once or even twice more.

They may eventually reach a rate of 6%, which could increase the likelihood of a brief recession.

He said that “the economic data recently have been reasonably strong even if it’s slowing.”

The Fed funds rate currently stands at 5.33%.

Stay tuned for more news about the economy and the crypto market as well and make sure to check out the numbers.

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