Cardillo: chances of economic soft landing “grim”

While the consumer remains resilient, the chances of  a soft landing in 2023 are grim, says Peter Cardillo of Spartan Capital. As the Federal Reserve continues to hike interest rates, Peter says,  the efforts to bring down inflation by the Fed will eventually weaken the consumer.

In fact, says Peter, not all the effects of the recent rate hikes have penetrated the economy yet, thus allowing the consumer to manage the higher cost of debt for now. However, with at least another three rate hikes ahead, the cost of financing consumer debt will be the burden that weighs on the economy in 2023. Spartan Capital therefore remain of the opinion that a mild recession is not avoidable.