The past few weeks have been marked by a number of positive developments for the US economy, the first of which was the significant upward revision of historical data on household disposable income. However, this was partially offset by weaker recent momentum, notes NBC’s Jocelyn Paquet.
The Fed will continue to cut its key rate at a gradual pace
“In reality, however, the future trajectory of household income will depend above all on developments in the labor market. Which brings us to the second piece of good news in recent weeks: the strong employment numbers for September.”
“As for the third good news, the Federal Reserve has not only decided to begin its monetary easing cycle with a 50 basis point cut, but has also underlined its willingness to cut benchmark rates further in the coming months, if we go by the latest edition of their dot chart.”
“Assuming inflation stays under control and the US election doesn’t cause too much disruption, we expect the Fed to continue cutting its key rate at a gradual pace in the coming months. This probably won’t stop growth from slowing significantly by the middle of next year, although we do not expect the economy to contract. Following this scenario, we anticipate growth of 2.6% and 1.2% in 2024 and 2025, respectively. This is better than the figures of 2,. 5% and the 0.9% that we presented last month.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
