Economy Shows Signs of Soft Landing as Inflation Cools, Stocks Rebound, and Consumers Stay Resilient
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Inflation has moderated more quickly than expected, paving the way for Fed rate cuts in 2024 and optimism about a "soft landing" for the economy.
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The stock market has rebounded, with the S&P 500 entering a new bull market, though small caps continue to lag large caps.
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Consumers have remained resilient despite high inflation and interest rates, supported by strong wage growth and savings.
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Productivity growth is picking up, which could allow higher wages without fueling inflation.
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Donald Trump has gained momentum in early 2024 election polling and betting markets, presenting a political wild card.