The Federal Reserve's efforts to slow the economy with interest rate increases is having an effect on the American economy, slowing demand and leading to tightened financial conditions. A recession is likely over the next 12 months, writes RSM US LLP Chief Economist Joseph Brusuelas in the June issue of The Real Economy. Still, areas of the economy have proved to be quite resilient.
On one side of the equation, the labor market remains strong, along with consumer spending. But on the other side, loan officers at banks are seeing a notable decline in demand for credit from businesses, Brusuelas writes.
Adding to the pressure is the commercial real estate sector, which has many loans that are now in question. RSM's Brandon Koeser and others analyze the current market and offer guidance over how to navigate this difficult stretch.
