Stocks and bonds rallied at the end of last year on the hope of a seemingly improbable combination of dynamics playing out to support financial assets in 2024 — cooling inflation, solid economic growth, a resilient labor market, and as much as 150 basis points of interest-rate cuts. That may not have been exactly what Austan Goolsbee, president of the Federal Reserve Bank of Chicago, meant when he said the economy appeared to be on a “golden path,” but it was the rosy scenario investors focused on.

Economic growth remains robust to start the year, but some recent data and comments from Fed Chair Jerome Powell have made that nirvana-like set of conditions less probable. A couple of key business sentiment measures have raised the possibility that a pickup in production could fuel a pickup in inflation. At the same time, Powell has said that the Fed wants further evidence of a sustainable easing in price pressures before cutting rates.

QOSHE - A Soft Landing for the US Economy Could Slip Away - Conor Sen
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A Soft Landing for the US Economy Could Slip Away

6 10
07.02.2024

Stocks and bonds rallied at the end of last year on the hope of a seemingly improbable combination of dynamics playing out to support financial assets in 2024 — cooling inflation, solid economic growth, a resilient labor market, and as much as........

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