U.S. economy grows at fastest pace in nearly 2 years, analyst sees ‘challenging macro picture’ ahead
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The U.S. economy experienced its most rapid growth in almost two years with GDP rising 4.9% at an annual rate in 2023’s third quarter. Consumer spending fueled the growth. However, Northwestern Mutual Wealth Management CIO Brent Schutte warns a recession could still be on the horizon, noting “the full impact of rate hikes have not hit yet” leaving us with “backward-looking data.” Schutte believes rising rates on auto loans, credit cards, and student debt will soon “erode the consumers’ condition.” While recent data is strong, he cautions headwinds are gathering as higher borrowing costs work through the economy. With mortgages comprising two-thirds of consumer debt and many on fixed rates, […]