NICK GOSNELL
Hutch Post
HUTCHINSON, Kan. — Creighton University economist Ernie Goss said even though he expects another rate hike from the Federal Reserve, he's a little more optimistic now than he was last month.
"The recession probabilities are lower, much lower than they were for the year of 2023," Goss said. "Inflation, the numbers there, tending to be much higher and the employment number, that's definitely a good thing. Normally, we have purchasing managers, supply managers telling us they have difficulty finding and hiring workers. Now, it seems like, at least for the month of February, they had less."
Goss is still concerned about the staring contest Congress and the administration appear to be ready to engage in regarding the debt ceiling.
"$31.5 trillion, we've reached the debt ceiling," Goss said. "If we don't see some raising of the debt ceiling in June, the first week of June, we're going to have some not so good consequences, if we don't raise that debt ceiling."
Republicans have insisted that a debt limit increase must be paired with spending cuts, but they are not looking to cut Social Security or Medicare.
"I do think there will be a solution to the debt ceiling," Goss said. "That would be madness, to not raise the debt ceiling, in my judgment. Jay Powell, head of the Federal Reserve, said the same thing."
How close to June the two sides will come before getting to that solution remains to be seen.
CLICK HERE to download the Hutch Post mobile app.
CLICK HERE to sign up for the daily Hutch Post email news update.