JPMorgan Scraps US Recession Call Amid Spreading Optimism
- Bank now sees ‘modest, sub-par growth’ in the US next year
- Feroli cites potential productivity gains, labor supply pickup
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JPMorgan Chase & Co. economists scrapped their call for a recession in the US, joining a growing number of forecasters who now expect the economy to avert the downturn that was once viewed as inevitable.
The bank, which had previously said it expected a recession to begin in 2023, now sees continued expansion this year and “modest, sub-par growth” in 2024 as the most likely scenario. Michael Feroli, JPMorgan’s chief US economist, flagged the rising possibility of “healthy non-inflationary growth” thanks to potential productivity gains from artificial intelligence and a pickup in labor supply.