Economy Growth Slowing in 2024 But Recession Avoided as Inflation Cools, Allowing Potential Fed Rate Cuts
-
Economy expected to grow 1.3% in 2024, slower than 2023 but avoiding recession. Stock market rallying on Fed rate cut hopes.
-
Inflation slowing more than expected, allowing Fed to pivot to rate cuts in 2024 to support growth.
-
Top risks are inflation falling too slowly, leading to more Fed hikes, or global shipping disruptions pushing prices up again.
-
Consumer spending to grow but at slower pace as savings dwindle. Job growth to average around 100k per month.
-
Housing starts hurt by rates in 2022 but should rebound in 2024 as demand stays robust.