U.S. markets fear recession and see interest rate cuts ahead as Fed loan survey looms

Some investors see a hard landing for the U.S. economy this year resulting from the sharply higher interest rates engineered by the Federal Reserve to quell inflation and tighter credit conditions in the wake of regional bank sector stress, while others note that consumer spending and employment growth remains healthy, but the Federal Reserve’s loan officer survey due this week may provide more clarity on which view is more accurate.

“The last two rate hikes were nuts, to be blunt,” said Edward Yardeni, president of Yardeni…