Posted 2/2/2024, 5:29:44 PM
Markets Steady in January After Strong 2022 Finish, With Economy Still Growing but Inflation Persistent
- Markets were mostly flat in January after a strong December, with mixed economic data showing continued strong growth but steady inflation
- The Fed did not cut rates at its latest meeting despite market expectations, signaling the central bank does not yet see clear inflation improvement
- Key things to watch effects of Middle East conflicts on supply chains and inflation, pending elections increasing uncertainty
- U.S. economy remains strong, especially labor market and corporate earnings, providing solid base despite risks
- Fed acknowledges getting closer to normal, and after very strong 2023 momentum tends to continue in the new year