Inflation Dropping but Economy Still Faces Uncertainty Ahead of 2024 Election
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Inflation has fallen from 9% in June 2022 to 3.1% in November, but is still above the Fed's 2% target. The Fed is expected to hold rates steady at its December meeting.
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The economy shows signs of improvement - inflation dropping, strong growth, low unemployment - but a soft landing is still not guaranteed.
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High prices and borrowing costs are squeezing Americans, hurting Biden politically. Trump leads Biden in battleground states currently.
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The Fed could cut rates in 2023 if inflation keeps falling, but must balance stimulating growth and avoiding recession.
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Whether the economy and possible soft landing help Biden's 2024 bid remains uncertain. Voters not yet sold on giving him credit.