-
US recession risks recede, but growth fears linger
Strong GDP and jobs growth shows that the US economy continues to shrug off high borrowing costs and tight credit conditions, largely through robust government spending and consumers running down their savings. These factors will be less supportive in 2024 and inflation is on the path to 2%, so the Federal Reserve has the room to cut interest rates sharply. Fed remains wary about easing policy too soon After the Federal Reserve’s dovish shift at the December FOMC meeting, where it signalled it was anticipating cutting the Fed funds target rate by 75bp in 2024, markets pushed on aggressively. Subdued inflation ... (full story)