I am not sure about a possible recession; easier to predict is interest rates, which is tied to a possibility of a recession.
I see that interest rates are likely to come down, as set by the Fed in Sept. (or even Aug., or October) which could help the Democrats. I have not looked at lots of economic numbers in the past several weeks, but that is what I see in the "tea leaves." I do not see a recession in the next 6 months, based on my limited look at data. At least one source suggests that I may be wrong.
The S&P 500 has rallied in the first half of 2024 as investors cheer resilient earnings growth and anticipate that aggressive Fed rate cuts are just around the corner. However, the New York Fed's recession probability model suggests there is still a 55.8% chance of a U.S. recession sometime in the next 12 months
https://money.usnews.com/investing/arti ... %20months.
One year out:
By May 2025, it is projected that there is a probability of 51.82 percent that the United States will fall into another economic recession.
https://www.statista.com/statistics/123 ... recession.
Hit Red looks at some economic numbers and perhaps he wants to add his input here.
I will look and then copy and paste:
More Fed Rate Cuts To Follow
Of course, market projections are contingent on a belief that fairly benign inflation data will continue to roll in. Powell said that further confidence that inflation is returning to the Fed’s 2% target will be needed before cutting rates, but that the “second quarter’s data has added to our confidence” and “more good data would further strengthen that confidence.”
FOMC projections from the June meeting called for one rate cut by year-end 2024 if the core PCE inflation rate reached 2.8% year over year in the fourth quarter of 2024. However, consensus projections are for core PCE inflation at 2.7% by then, and Morningstar’s forecast is 2.5%. (...)
Markets are now projecting three cuts in 2024, taking the federal-funds rate down to 4.50%-4.75% by December. Markets expect a further four cuts in 2025, taking the rate down to 3.50%-3.75% by the end of the year.
https://www.morningstar.com/economy/sep ... -then-what
When will mortgage interest rates go down?
Mortgage rates have already started to pull back, with the 30-year loan averaging 6.86 percent as of July 31, according to Bankrate’s weekly lender survey.
Still, rates might not fall as far as some homeowners hope, as forecasters previously baked in a September rate cut. In fourth quarter 2024 outlooks, Fannie Mae analysts anticipate 30-year rates at 6.7 percent, while the Mortgage Bankers Association predicts 6.6 percent. The National Association of Realtors projects 6.7 percent.
https://www.bankrate.com/mortgages/mort ... es-go-down