Economist Ed Hyman Backs Off Recession Call

Why He Made the ‘Very Difficult Decision’

Ed Hyman, an economist widely followed on Wall Street, has backed off his earlier call for a recession in 2023.

In a recent note to clients, Hyman said he had made the “very difficult decision” to change his forecast after reviewing new data and consulting with other economists.

Hyman had previously predicted that a recession would begin in the second half of 2023, but he now believes that the economy will continue to grow, albeit at a slower pace.

Hyman cited several reasons for his change of heart.

First, he noted that the labor market remains strong, with low unemployment and rising wages.

Second, he pointed to the fact that consumer spending has been resilient despite high inflation.

Finally, he said that the Federal Reserve’s interest rate hikes are likely to have a less severe impact on the economy than he had previously expected.

Hyman’s change of forecast is a significant development, as he is one of the most respected economists on Wall Street.

His decision to back off his recession call suggests that the risk of a recession in 2023 is lower than previously thought.

However, Hyman cautioned that the economy still faces significant challenges, including high inflation, rising interest rates, and geopolitical uncertainty.

He said that it is possible that a recession could still occur in 2024 or 2025.