While expectations for the US economy have shifted from recession fears to a soft landing, Bank of New York Mellon Macro Chief Sonia Meskin warns that there are still weak spots in the market. Speaking with Bloomberg’s Tom Keene, she highlighted the strength of corporate balance sheets in weathering the curveballs of a post-COVID economy but points to corporate real estate as a potential source of risk.

It's helpful that the balance sheets of both households and Corporates have been much, much improved since covid. What we're seeing, um, the fact that we're seeing now from that improvement is really in the consumer, and we've been able to withstand a lot of curveballs in the American economy in the last couple of years. These people have been predicting a recession for a couple of years now, right at least a year, and we haven't seen it yet, and we've just now turned the sentiment towards the expectation for a soft landing but I would say that, um, even though the labor market is still quite strong and the balance sheets are quite strong, there's still risks out there. The risk out there like commercials, the bloom crew that bra talks about all the time, the commercial real estate or there are a lot of questions about the loan business, the leverage loan business as well. Do you would be NY Mellon with the longest dividend since time began? John. It's like 16 30. They've been doing a dividend since the Pilgrims hit the Rock and the and the answer is the the The answer is, there are these worries out there. Can they intrude into the prosperity of America? I think that the bigger the explosion of various actors within the economy, the higher the risk. So if you look at CRE, for example, um, there are different subsets of CRE. And of course, uh, office space in major metropolises is not coming back at least in the, uh in the foreseeable future to where it was pre covid. But there are other elements of CRE, for example, like multifamily mixed use spaces that are doing better