Stocks slipped again Thursday as investors braced for more interest rate hikes from the Federal Reserve, and the volatility is once again stirring up debates over whether the U.S. economy is headed for a recession.
"Our view right now is that for the next six months the U.S. economy should be okay," said Ahmed Riesgo, chief investment officer for financial services company Insigneo.
He said the strength of the January jobs report has put downward pressure on stocks because it showed resilience in the economy that many investors interpreted as a sign that more rate hikes were coming. Recent reports showing "sticky" inflation have had a similar effect.
These trends increase the odds of a recession, he added, because the uncertainty around inflation makes it more likely the Fed will make a policy mistake.
"Our base case is not a recession," he said. "But when you look a little bit further out over a 12 month period, I think the chances of a mild recession in the United States are very elevated."
He also cited recent comments from Fed officials as evidence for this theory. The nation's top bankers have signaled they are committed to bringing inflation down to 2 percent annually, while also saying hitting that goal effectively requires inducing a recession.
Widespread flash flooding hit New York City on Friday and city residents were dealing with financial losses and molding in the aftermath. Cheddar News took a deep dive into what to do to when dealing with storm cleanup.
A federal agency has sued the restaurant chain Chipotle, accusing it of religious harassment and retaliation after a manager at a Kansas location forcibly removed an employee's hijab, a headscarf worn by some Muslim women.
In a statement Sunday, the Atlanta-based Fearless Fund said it would comply with the order but remained confident of prevailing in the lawsuit, which was brought by conservative activist Edward Blum’s American Alliance for Equal Rights.
The Week's Top Stories is a guided tour through the biggest market stories of the week, from winning stocks to brutal dips to the facts and forecasts generating buzz on Wall Street.
