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Economics

Bellwether FedEx Sends a Troubling Signal for the Global Economy

  • Liquidity conditions point to further FedEx underperformance
  • Higher rates squeezing revenues, leaving stocks on shaky turf
A cargo jet parked at the FedEx Express Hub in Memphis, Tennessee.

A cargo jet parked at the FedEx Express Hub in Memphis, Tennessee.

Photographer: Luke Sharrett/Bloomberg

FedEx’s announcement that it would be withdrawing its earnings forecast is another indication the US and global economies are slowing.

The delivery company is a bellwether for the economic outlook, and it is highly sensitive to global monetary conditions. These conditions have yet to improve while central banks around the world remain squarely focused on eradicating elevated inflation, pointing to more underperformance ahead for FedEx.