Cathie Wood Predicts U.S. Economic Boom After Rolling Recession
What is a Rolling Recession?
A rolling recession occurs when different sectors of the economy contract and recover at different times, preventing a full-scale economic downturn. According to Wood, this process is nearing completion, paving the way for strong economic growth.
Key Drivers of the Boom
More Flexibility for the Trump Administration & Federal Reserve
- Wood argues that with the recession ending, President Trump and Federal Reserve Chair Jerome Powell will have greater freedom in shaping economic policies.
Potential Tax Cuts Could Accelerate Growth
- In an interview with Anthony Pompliano, Wood suggested that an expected tax cut plan could reduce uncertainty and boost economic productivity.
- She proposed a retroactive tax cut (e.g., reducing tax rates by 3% from February or March 2025) could fuel economic expansion.
Rising Productivity & Stronger U.S. Dollar
- Wood anticipates a major surge in productivity, helping the economy recover.
- A stronger U.S. dollar could help counteract inflationary pressures.
Inflation Could Drop Sharply
Wood believes inflation could fall much lower than expected, citing two key factors:
– Productivity growth
– Stronger U.S. dollar
The Big Picture
According to Wood, sectors like housing, autos, capital spending, and small businesses have already faced downturns. With high-income earners now feeling the pressure, she suggests the U.S. is primed for a new growth cycle.
Editorial Team
Reporter at Coindoo
