West Chester-Based Economist Thinks U.S. Can Skirt Recession

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While recession risks are uncomfortably high, there are good reasons to believe that a downturn can be avoided, writes Mark Zandi, chief economist of Moody’s Analytics in West Chester, for The Philadelphia Inquirer.

The first among them is the healthy finances of a typical American household. Even with the pandemic and the war in Ukraine, the nation boasts low unemployment. Also, layoffs are at some of their lowest levels and people who do lose their jobs can quickly find new ones. Most households saved a lot during the pandemic and have also been able to manage their debts.

U.S. businesses are also in good financial shape, with many companies reporting close to record profit margins.

Banks are also on strong financial ground. Thanks to new regulations that followed the financial crisis more than a decade ago, there is neither too much nor too little credit.

Additionally, state and local governments are in excellent financial shape and have plenty of rainy-day funds available.

Read more about the preparedness of the nation’s economy in The Philadelphia Inquirer.

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