Top Economist Slams Colleagues for Repeatedly Misjudging Economic Strength

Breaking News: Top Analyst Slams Economics Profession Over Misjudgments Torsten Sløk, chief economist at Apollo Global Management, has delivered a scathing critique of the economics profession, stating that forecasts of an imminent slowdown have been repeatedly wrong. In a note circulated to clients on Wednesday morning, Sløk noted that the consensus among economists has predicted a U.S. economic slowdown for nine consecutive months, but reality has defied expectations. Timeline of Misjudgments Since January, the average forecast by economists has predicted a slowdown in the U.S. economy. However, actual data has consistently shown growth, with second-quarter GDP exceeding expectations. Sløk's comments come as Jerome Powell, Chairman of the Federal Reserve, described the current economic environment as "low-hire, low-fire." Immediate Impact and Response The analyst's remarks have sent shockwaves through financial markets, with investors reassessing their views on the economy. The S&P 500 index rose 1.2% in early trading, while the yield on the 10-year Treasury note climbed to a two-week high. Background Context Sløk's comments are part of a broader debate within the economics profession about its track record and methodology. Critics argue that economists have become too reliant on models and data, rather than using their expertise to interpret trends and make informed predictions. What Happens Next As investors and policymakers grapple with Sløk's critique, the focus will shift to understanding the underlying drivers of economic growth. With the Federal Reserve set to meet next week, markets will be watching closely for any changes in monetary policy. In the meantime, businesses are advised to remain vigilant and adapt their strategies to reflect the changing economic landscape. Market Analysis The analyst's comments have sparked a reevaluation of market expectations, with some analysts now predicting stronger growth than previously anticipated. However, others caution that the economy remains vulnerable to external shocks, such as trade tensions or global economic downturns. *This story is developing. Information compiled from Fortune reporting.*