From Yahoo Finance: 2025-04-08 21:35:00

Wells Fargo believes the US may avoid a recession in 2025, citing promising economic signs and solid job growth. Despite recent market chaos, key economic supports remain intact, potentially leading to a moderate growth recovery in the second half of the year.

Consumer spending has slowed, but higher income growth has supported Americans. Job growth remains strong, cushioning consumer purchasing power. Stocks have entered correction territory, but household wealth remains high. Borrowing costs have eased, stabilizing credit-sensitive sectors like housing.

Liquidity levels are supportive compared to previous recessions, with plentiful bank reserves. Market outlook for 2025 remains tepid, with many investors feeling bearish. Other banks have raised recession forecasts due to Trump’s trade war. Overall, uncertainty looms, but signs of economic strength persist.

Goldman Sachs and JPMorgan have raised recession forecasts, citing Trump’s trade war as a major risk. Despite market volatility, borrowing costs have eased, stabilizing credit-sensitive sectors. Liquidity levels remain supportive, but market outlook for 2025 is cautious. The economy shows signs of strength, but risks remain.

Read more: There are 4 reasons the US can still avoid a recession in 2025