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Economic index flashes major recession warning sign
October job report validates Federal Reserve’s rate hike, path to combat inflation, analyst says
Slatestone Wealth Chief Market Strategist Kenny Polcari discusses the release of the October job report and how it confirms the Federal Reserve’s plan to address inflation on ‘Varney & Co.’
An often-overlooked economic gauge indicated on Friday that the U.S. economy is headed for a recession — or already in one — as the Federal Reserve tries to curb inflation with a series of rapid interest rate hikes.
The Conference Board’s Leading Economic Indicators index showed that conditions further deteriorated in October, with the gauge down 0.8% from the previous month. That follows a 0.5% decline in September.
"The U.S. LEI fell for an eighth consecutive month, suggesting the economy is possibly in a recession," said Ataman Ozyildirim, senior director of economic research at The Conference Board.
The slump reflects a worsening outlook among consumers, who are increasingly worried about steeper interest rates and stubbornly high inflation, as well as a prolonged slump in the housing market.
DEMOCRATS SLAM 'DANGEROUS' FED RATE HIKES, WARNING OF WIDESPREAD JOB LOSSES