2023 turned out much better than what most feared: The US economy continues to remain resilient despite mounting risks: the most aggressive rate-hiking cycle in four decades by the Fed, two wars and rising geopolitical risks, banking sector woes, and worries about an impending recession. In fact, the economy has picked up speed instead of slowing down: third quarter growth was far higher than normal levels, the pace of job formation has accelerated over the past three months, and the stock market is buoyant. All this has happened while inflation has receded at a rapid clip. As it winds down, 2023 will be remembered as a year that wildly exceeded even the most optimistic expectations.
The last few weeks have heralded even better news: the Fed has finally taken the “Big Pivot,” penciling in rate cuts now that inflation appears to be under control to support the economy. This may be just what is needed for the economy to achieve the much coveted (but hard to pull off) “soft landing” scenario.
What’s in store for 2024? Is the Fed truly done with inflation? Will the Fed cut rates as aggressively as the market expects? Will growth hold up?
Dr. Farka will address these issues and more, such as:
- What’s next after the “Fed Pivot”?
- Can the Fed execute the “pivot” and cut rates aggressively?
- Is the hard part of wrestling with inflation over?
- Will the economy soft-land or fall into a recession?
- Are banking sector woes over?
- Are large budget deficits likely to become a drag on growth?
- Is the housing market heading for a significant correction?
- What is the local outlook? Will OC fare better than the nation?
