Wealthion · Friday, August 28, 2026
An analyst suggests that the primary historical cause of recessions—the Federal Reserve raising rates too high or keeping them there too long—is not currently a threat. This is because the Fed is not seen as breaking the credit or money market systems, thus reducing the likelihood of a recession in the near future.
“The only thing that we need to be on guard for, and the only thing that causes higher unemployment, earnings degradation, and creates a recession, historically has been the Fed raising rates, um, too high, keeping them there for too long, breaking something in the credit system, breaking in the money market system, putting us into recession.”
“That is not happening. It's not going to happen. At least for the next, you know, couple of years.”