10 reasons why the recession Wall Street predicted to death never arrived

Since late 2022, a majority of big Wall Street names have repeatedly predicted a recession to hit the US economy this year.

Economists at the Swiss banking giant UBS have compiled a list of 10 reasons why the recession failed to show up. Using the National Bureau of Economic Research's definition of the term, which tracks criteria such as consumption, production, and unemployment, the bank has produced a list of evidence that shows the US economy is much more resilient than many experts give credit for.

The Inflation Reduction Act of 2022 has also helped stimulate investment, especially in the manufacturing sector, according to UBS.Savings accrued during the pandemic have acted as a buffer against the rising cost of living, supporting consumption in the US economy. Additionally, financial-asset price increases have boosted total wealth.

High-yield bond spreads are down year-to-date, according to UBS, meaning companies with lower credit ratings have easier access to public debt than twelve months ago. The issuance of such debt is on the rise, too. American employers are still adding a sizable number of new positions, pushing jobless claims in the economy below pre-pandemic averages.

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