Most economists at primary dealers are predicting US recession in 2023
It follows historic rate tightening from the Fed to combat soaring inflation
Americans have drained much of the excess savings built up during pandemic
Higher interest rates have cooled spending a put a dent in the housing market
Two-thirds of economists at the largest US financial institutions believe a recession will occur in 2023, according to a new survey.
The Wall Street Journal survey of 23 primary dealers, the large financial firms that do business directly with the Federal Reserve, found a majority expect a recession in the coming year.
Among the top economic concerns cited included dwindling personal savings, the decline in the housing market, and tightening lending standards at many banks.
t follows the Fed’s rapid rate hikes to battle soaring inflation last year, which saw the benchmark rate rise from near zero in March to a range of 4.25 percent to 4.5 percent by the end of the year.

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