Is The Market Still Worried About An Economic Recession? This is JPMorgan's View

<p>&nbsp;JPMorgan economists now no longer expect a recession in the United States this year. This change in sentiment comes as the United States economy continues to grow at a healthy rate.</p><p><br /></p><p>"With this growth, we doubt the economy will quickly lose enough momentum to slip into a mild contraction as early as next quarter, as we had previously expected," economists wrote in a note.</p><p><br /></p><p><br /></p><p>"Although the economic recession is no longer our capital scenario, the downside risk is still very high. One way this risk could persist is if the Fed does not stop raising rates. While we and the market think it is over, it may not take too much of an inflationary shock for the FOMC to implement the additional rate hikes it signaled in June.”</p><p><br /></p><p>On the other hand, they say the risk of a recession is now seen as high next year. JPMorgan also expects the Fed to start lowering rates in the third quarter of next year.</p>