Posted 1/9/2024, 3:35:00 AM
Cooling Inflation and Slowing Growth Argue for Lower Rates to Buoy Struggling Economy
- Inflation has cooled significantly, arguing for lower interest rates to support the economy
- Economic growth has slowed markedly, also arguing for lower rates
- The labor market is not as strong as it seems - private sector job growth was only 1.2% annualized over the past 6 months
- Falling commodity prices and used car prices point to mounting deflationary pressures
- Housing affordability is extremely strained due to high prices and mortgage rates; prices and/or rates need to fall to support the market