SSO - Weak Inflation And Strong Growth Underscore The Goldilocks U.S. Economy

2024-01-26 19:13:00 ET

Summary

• Inflation is on the cusp of hitting the 2% target.
• Strong spending is still driven by legacy savings.
• First quarter GDP growth is set to remain robust, leaving May the more likely start point for rate cuts.

By James Knightley

Inflation on the cusp of hitting the 2% target

The December personal income and spending report contains a number of interesting stories, but the obvious headline is that the US economy has been able to return inflation towards the target in an environment of vigorous consumer spending growth. Something that is even more remarkable after a significant supply shock and during a period of ultra-low unemployment....

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