Fed Will Pause in Early 2023, UBS's Lovell Says

The video discusses the potential for a rate pivot by the Fed, emphasizing the need for inflation to decrease significantly before any rate cuts can occur. It highlights the Fed's focus on the labor market and the necessity of a higher unemployment rate for comfort in cutting rates. The discussion also covers consumer resilience, shifts in spending from goods to services, and the strength of consumer and corporate balance sheets, suggesting a shallow recession is possible due to these factors.

In what ways are consumer spending patterns shifting, as mentioned in the text?

What implications does the health of corporate and consumer balance sheets have on the potential for a recession?