Cleveland Fed President: No Reason To Believe Recession In Sight

Is the U.S. economy on the verge of a recession? Multiple experts said this week there are no signs of a coming economic downturn — despite a rocky period for the markets and pressures such as a Sino-American trade war. 

Fed's Mester: Job Is To 'Gear The Economy'

The Federal Reserve's task is to "gear the economy" to the point where it doesn't "overheat" and enter a recession, Cleveland Federal Reserve President Loretta Mester told CNBC's Steve Liesman in a Friday interview.

At the same time, the Fed needs to make sure its policies don't "put on the brakes on the economy" and must find a middleground to keep the economy healthy, she said. 

Liesman responded that the Fed's role is "not what markets appear to think you're doing."

Mester said the market could be assessing economic challenges differently than the Fed. The policymaking body is open to other viewpoints and information from the business community that informs its outlook, she said. 

Looking forward to this year and 2020, Mester said growth is slowing from 2018's 3-percent level, but added that this is "expected" and there is no reason to believe a recession will occur.

Related Link: Fed Chair Powell: 'We Will Be Patient' 

Ladenburg's Blancato: 'Too Much Core Strength'

The American consumer remains in "stellar condition," Philip Blancato of Ladenburg Thalmann Asset Management told CNBC Thursday. The U.S. economy derives 70 percent of its growth from the consumer, and they are generally working and are not overleveraged, Blancato said.  

While issues exist at the federal level and perhaps on corporate balance sheets, Blancato said there "isn't a scenario where I see a bubble environment" that would result in a recession. 

"There is too much core strength in the U.S. economy to recess at this point," he said. "Maybe at some point, but just not yet."

Cramer: Buy These Recession-Proof Stocks

If a recession does come investors, can protect their portfolio with three recession-proof stocks, CNBC's Jim Cramer said during his daily "Mad Money" show Thursday. He defined the stocks as those that simply "do well in a recession" but are still "worth owning" in times of economic growth.

The three names Cramer recommends are Clorox Co CLX, PepsiCo, Inc. PEP and The Coca-Cola Co KO. All three are likely beneficiaries of some of the characteristics of recessions, including lower raw costs, the CNBC host said. 

"If you can drink it or wash with it, [Federal Reserve Chairman] Jay Powell just gave you a winner." 

Related Link: Opinion: Looking For The Recession? 5 Charts You Need To See