Best news is despite such rapid rate hikes, the US economy is remain resilient: Arvind Sanger
Arvind Sanger, Managing Partner, Geosphere Capital Management, says “right now, we are in that hope phase of that bipolar and the data on Friday which will be related to employment will be another important data point that will give some hope or maybe dash some hopes if it turns out to be surprisingly strong in terms of the economy. That seems to be the current state. I am not ready to declare this as victory yet.”
How are you reading into the US GDP data?
I think the US has proved to be surprisingly resilient in terms of the economy and inflation data, employment data, others are suggesting that actually employment now data is suggesting that inflation pressures may be abating, so that is a Goldilocks scenario that inflation comes down but growth remains relatively resilient, so we avoid a recession and we kill inflation.
I think that is the current hope. But we are kind of bipolar right now.
One week, the Fed is going to have to raise interest rates a lot and the next week it is maybe the Fed is done and the economy is fine.
So, right now, we are in that hope phase of that bipolar and the data on Friday which will be related to employment will be another important data point that will give some hope or maybe dash some hopes if it turns out to be surprisingly strong in terms of the economy. That seems to be the current state.
