Hotels Could Struggle as Prices Outpace Paycheck
Wells Fargo Economist Says 'Small-R' Recession on the Way
With both savings declining and income growth slowing, the American economy is in for some harsh reality heading into 2023.
With both savings declining and income growth slowing, the American economy is in for some harsh reality heading into 2023.
That was the takeaway of current economic data by Tim Quinlan, managing director and senior economist for Wells Fargo Securities, as he spoke at the 2022 Driftwood Capital Investor Conference.
Prices are growing faster than our paychecks are,
he said.
Quinlan said the Federal Reserve's efforts to cool inflation were necessary, but essentially "broke the economy," meaning a recession is unavoidable. He said he presumed the situation actually would be worse than economic data has shown so far.
Our forecast has a recession penciled in,
he said. I think as recessions go, it's a small 'r' recession or a relatively mild recession, but a recession nonetheless.
Quinlan said current consumer trends simply cannot last.