US Economy Achieves Soft Landing in 2023, Setting Stage for Solid Growth in 2024
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The US economy has stabilized in 2023 after a turbulent year, achieving a "soft landing" with cooling inflation and steady growth.
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Signs point to continued moderate economic growth in 2024 without sparking higher inflation again. This includes slowing but still-solid job gains and rising productivity.
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The Federal Reserve can likely justify modest interest rate cuts in 2024 to support growth if job gains slow further, while not overheating the economy again.
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Risks remain, including faster inflation if financial conditions loosen too rapidly or an economic downturn if joblessness rises more sharply. But odds of recession seem low.
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With stable growth, slowing inflation, and likely Fed rate cuts, conditions favor strong stock market returns in 2024 as risks recede.