Speaking to TD Ameritrade Network, LaBella noted that the U.S. economy is prospering, with consumers acting as the main driver. He stated that factors like increased income over the past year highlight the consumer’s position despite the economic hardships from the health crisis. LaBella maintains that such a recovery environment was not witnessed after the dot com bubble alongside the 2008 financial crisis. According to the manager, the current U.S. consumer position is due to the government’s reaction to the pandemic.
The Fed to show caution
He added that the Federal Reserve might show caution in regards to injecting more capital into the economy. LaBella notes that the Fed will also be cautious in enacting any policy relating to interest rates as it impacts the consumer directly. LaBella points out that despite consumers remaining central to the recovery, the economy is slowing down mainly because people have not spent money as they wish. Additionally, he attributed the slow down to an increase in prices due to supply disruptions. However, he cited that the bipartisan infrastructure bill is pivotal in driving the U.S. economy to the next level. On the possibility of the economy declining due to the Covid-19 delta variant, LaBella suggested the threats are over because of the underlying metrics. He noted that the effects would be transitionary in the coming months. [robinhood] [coinbase]
