‘Something very strange’ explains why a US recession has been delayed

• “Something very strange has happened” in the economy that is preventing a recession, Societe Generale said.
• The bank highlighted that as the Fed raised interest rates over the past year, corporate net interest payments actually fell.
• Here’s how US businesses successfully navigated an extreme cycle of monetary tightening without sparking a recession.

Since the Federal Reserve began aggressively hiking interest rates last year, more and more economists warned that a US recession was imminent.

But that recession has not yet arrived, and there’s no sign a recession is near even after reliable indicators like the inverted yield curve flashed red flags.