Wells Fargo Upgrades Economic Outlook, Forecasts 'No Landing' of Continued Growth and Low Unemployment Despite Persistent Inflation

• The US economy is proving more resilient than expected, leading to a "no landing" scenario with continued growth and low unemployment but also persistent inflation.

• Wells Fargo upgraded its economic forecasts, now expecting 2.5% GDP growth in 2024, 4.1% unemployment, and 3% inflation.

• Financial conditions remain accommodative despite Fed rate hikes, supporting growth.

• With the economy still hot, Wells Fargo expects only 2 rate cuts in 2024 and 1 in 2025, fewer than previously forecasted.

• Wells Fargo sees volatility ahead but upgrades its S&P 500 target to a range of 5,100-5,300 on expectations of strong earnings and commodity prices.