- San Francisco Federal Reserve chief says that a recession is not on the horizon.
- Trader Peter Brandt shares her sentiment as he believes the S&P 500 has more muscle.
- Other analysts also see the index climbing but only after a short-term pullback.
The unending trade war threats, the contracting manufacturing industry and the cutting of interest rates may signal the U.S. economy is showing signs of weakness. However, a high ranking Federal Reserve official says that a recession is not in sight.
In a CNN interview, San Francisco Federal Reserve president Mary Daly shows a lot of optimism about the economy. Her upbeat outlook comes in spite of the fact that the U.S. has entered its 125th month of economic expansion to mark the longest growth in history. Daly said:
Expansions don’t die of old age,
The expansion since 2009 is now the longest in American history. | Source: CNBC
When asked if the economy has more room for growth, the Fed chief responded,
I do think we have more muscle. I think we have more room to run.
The data are better than some of the mood on these things. Recession is not, in my judgment, right around the corner.
Daly is not alone in having a bullish stance on the economy and the stock market. Top market experts also have a rosy outlook.
Peter Brandt: The S&P 500 Has One More Leg Up
Fundamental threats such as the trade war might suck the euphoria out of the stock market as a lot of people are scared about the next recession.