The risk of a US recession has been mitigated- JP Morgan Asset Management

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Also Read- Adani Ports December cargo volumes up 42% YoY to 35.65 mt, raises FY24 guidance; stock gains 3% Leading indicators are signaling weaker US growth, but Cembalest has emphasized that these indicators point to a slowdown rather than a sharp decline, suggested the ANI feed. While there's talk of a potential recession in 2024, Cembalest notes that even if it occurs, it is likely to be mild, thanks in part to the Federal Reserve providing ample liquidity to the banking system.

Despite an increase in Fed policy rates, ANI highlighted that Cembalest explains the risk of a recession has been mitigated by factors such as the corporate sector's solid cash flow, the terming out of debt maturities, and ongoing liquidity support from the Fed. He cautions, however, that recessions typically occur several quarters after the initial Fed hike.

Turning to inflation, Cembalest acknowledges the success in curbing inflation in the US and other developed economies. Also Read- UltraTech share price declines 3%. Q3 volume numbers fail to lift sentiments Factors contributing to this include falling supply chain pressures, rising auto inventories, and declining used vehicle values.

The report as per ANI delves into antitrust risks facing US tech stocks and includes a detailed analysis of weight loss drugs, the US Federal debt, China, and the top ten surprises for 2024. The outlook also considers the potential impact of new US energy and industrial policies on inflation risks.