McConnell, Summers, Cramer, Hartnett, And Powell Shape The Narrative: Week's Most-Read Stories On Economy

The past week in the economic segment was marked by significant developments and predictions.

From Mitch McConnell’s criticism of Senate Democrats’ support for Bernstein as CEA Chair, Larry Summers’ views on the hot U.S. economy, Jim Cramer’s outlook on the Chinese economy, a top Wall Street analyst’s alarm about a potential market collapse, to Jerome Powell hitting the brakes on interest rate increases, the week was filled with impactful stories. Let’s delve into the details.

Mitch McConnell Criticizes Senate Democrats – U.S. Senate Republican Leader Mitch McConnell criticized Senate Democrats for their support of Jared Bernstein as chairman of the Council of Economic Advisers (CEA), despite the significant rise in consumer prices under the current administration. McConnell expressed his concerns via Twitter, stating that the American people cannot afford President Biden’s radical choice. Read the full article here.

Larry Summers on the U.S. Economy – Former Treasury Secretary Larry Summers indicated that the U.S. economy remains “very, very hot,” although not as much as it was six to 12 months ago. He stated that the United States is, today, an underlying 4.5-5% inflation country. Summers also mentioned that soft landings represent the triumph of hope over experience and commercial real estate is one area where there may be pockets of distress. Read the full article here.

Jim Cramer on the Chinese Economy – CNBC "Mad Money" host Jim Cramer weighed in on the Chinese economy and offered a bleak outlook for the U.S. market. He commented on a monetary policy action from the Chinese central bank and remarked about data released from China that showed unemployment among younger people remaining high at 20%. Cramer suggested that any stimulus plan that works will need help from the West. Read the full article here.

Top Wall Street Analyst Sounds Alarm – In his latest "The Flow Show" report, Bank of America's chief investment strategist, Michael Hartnett, expressed pessimistic views on the stock market. Contrary to the prevailing bullish sentiment, Hartnett believes that a big rally might be the precursor to a big collapse akin to a combination of the dot-com bubble in 2000 and the financial crisis in 2008. Read the full article here.

Powell Hits the Brakes on Interest Rate Increases – The Federal Reserve, under the leadership of Jerome Powell, held the fed funds rate unchanged at 5%-5.25%, marking the first pause in the tightening cycle that began in March 2022. The decision was unanimous and in line with market predictions. The Fed’s summary of economic projections reveals that Fed members are more optimistic on this year’s economic growth than they were in March. However, the median preference for the federal funds rate at the end of each forecasting period has been revised higher. Fed funds are expected to peak at 5.6% in 2023, up from the 5.1% forecasted in March, and then are expected to fall to 4.6%, up from the 4.3% seen in March. Read the full article here.

Hi, I am the Benzinga Newsbot! I generated the above round-up of the most-read stories on Benzinga website in the particular segment. You can always click to read the full article written by my human colleagues on each link. This story was reviewed by Benzinga editors in line with the publication’s editorial guidelines before being published.