Recession Fears Continue to Grow Amid Economic Uncertainty

The US economy is experiencing a "rolling recession," with some sectors in decline while others, such as travel and leisure, remain strong, according to David Bailin, Chief Investment Officer at Citi Global Wealth Investments. Commercial real estate and basic consumer manufacturing are among the shrinking businesses, but the overall economy is still expanding. Interest rates are a key factor, with smaller and medium-sized companies that have capital needs being disadvantaged. The labor market is slowing but still adding jobs, while consumer spending remains resilient. The Federal Reserve is playing a balancing act, pausing rate hikes but warning of one or two more raises later this year to fight inflation.