Consumer Sentiment Jumps on Hopeful Views of Wages and Inflation, Raising Prospects of Fed Rate Cuts
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Consumer sentiment turned positive, jumping to highest level since 2021 as consumers grow hopeful on wages and declining inflation
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Labor data will play key role in Fed's interest rate cut decisions
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With economic downturn, Fed would cut rates more aggressively, making inflation's "last mile" easier
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Baseline forecast is soft landing with continued consumer and labor market strength
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Risk scenario is sharper downturn in employment and consumer spending, enabling aggressive Fed rate cuts