Oil prices, interest rates, tax hikes ‘trio of bad news’ for the economy, market expert says

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Potomac Wealth Advisors President Mark Avallone discusses the possibility of a recession.

Well, it's been a reasonable indicator, as you know, it hasn't always been accurate. There was a reading in 2019 that called for recession, and if we didn't have COVID, it would have been a totally wrong report. So, it's really hard to look at one data point and project out.

But the way the Fed is raising the short end of the curve in the way the bond market's reacting tells you that later in this year or in 2023, the economy is more than likely going to slow down. What's happening with oil prices, what's happening with interest rates, those are two huge headwinds. And if we add tax hikes again, that would be a trio of bad news for the economy.

 

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