The economy is now on its final approach for a soft landing.
Over the past few weeks, indicators provided key evidence that the nation’s economy will escape both a recession and move past higher inflation. As with all soft landings, it does not mean that we will escape a few bumps (i.e. slower growth next year) as we descend. The forward-looking equity markets also point to this scenario, as evidenced by the almost 10% gain in the Dow since early November.
Several key reports came out that support this soft-landing scenario. The first has to do with inflation itself. Last month’s Consumer Price Index release showed that inflation declined to 3.2%, and the core rate (minus food and energy) declined to 4%. The…