Wall Street economists say investor fears about recession are overblown

The market’s response to the weak July jobs report has fueled concerns the Federal Reserve made a mistake holding rates at a 23-year high at their most recent meeting.

And now, talk in some corners of the investment world has shifted from the timing of rate cuts to the timing of a recession hitting the US economy.

But several economists and equity strategists believe that while the risks of recession have risen amid weakening economic data, the last few days of market action have been an overreaction.

In an interview on Tuesday, Apollo Global Management chief economist Torsten Sløk told Yahoo Finance the market is “pricing in too many cuts.” (Disclosure: Yahoo Finance is owned by Apollo Global Management.)

 

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