- Disinflationary trends in the US are taking hold partly because of China’s weakening economy, according to Ed Yardeni.
- Yardeni said on Thursday that the US could continue to see lower inflation without a recession.
- China’s aging demographic profile and weak consumer spending is disinflationary for the US, Yardeni said.
If the US manages to get inflation back down to the Federal Reserve’s long-term target of 2% without triggering a recession, it might have to partly thank China, according to market veteran Ed Yardeni.
Yardeni highlighted in a Thursday note to clients that certain economic forces in China are having a disinflationary impact on the US, and that could ultimately pave the way for a soft landing in the US economy.
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