Economists Predict US Recession Unlikely, Mortgage Rates Soar, And China's Economy Surpasses Expectations: This Week In Economics

This week has been a rollercoaster ride of economic news. While economists are now predicting a brighter future for the U.S. economy, mortgage rates have hit a 20-year high. Meanwhile, the Taliban strengthens its relations with China, and the Chinese economy is exceeding growth expectations despite real estate concerns. Finally, the Federal Reserve suggests that the resumption of federal student loan payments will have minimal impact on the U.S. economy. Let’s delve into these stories a little further.

Economists Predict U.S. Recession Unlikely
A survey by The Wall Street Journal shows a drop in the predicted likelihood of a U.S. recession within the next year. The optimism is driven by a decrease in inflation, a halt in Federal Reserve interest rate hikes, and a robust labor market. Read the full article here.

Mortgage Rates Reach 20-Year High Amid Treasury Turmoil
A survey by Mortgage News Daily reveals that the average 30-year mortgage rate has soared to 8%, driven by a climb in the 30-year Treasury bond yield. The Mortgage Banker Association data also shows a continuous upward trend for six weeks in fixed-rate mortgages. Read the full article here.

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Taliban Strengthens Ties with China
The Taliban confirms its attendance at China’s Belt and Road Forum, underlining Beijing’s growing official ties with the Taliban-led administration. This invitation to one of the most significant multilateral summits marks an important move in international relations. Read the full article here.

China’s Economy Surpasses Q3 Expectations
Despite challenges in the real estate market, China’s economy has experienced significant growth in the third quarter. Massive investments by the government and state banks have sparked this surge, beating expectations. Read the full article here.

Resumption of Student Loan Payments Will Not Impact U.S. Economy
New research from the Federal Reserve Bank of New York suggests that the return of federal student loan payments will not notably affect the U.S. economy. The estimated average monthly spending cut by student borrowers resuming loan payments is a mere $56.Read the full article here.

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