© Reuters.
In a Tuesday note to clients, Wolfe Research strategists have revised their base case scenario, now anticipating a “no landing” outcome for the U.S. economy, signaling an optimistic outlook.
The broker predicts real U.S. GDP growth to exceed 2% year-over-year in 2024, with inflation trends remaining above 2.5%. This shift reflects stronger-than-expected economic resilience, suggesting sustained growth rather than a downturn or stagnation.
Key factors influencing this outlook include the Federal Reserve’s policy directions, inflationary trends, and the performance of key economic sectors.
“The economy has come in much stronger than expected over the past three months,” strategists said in the note.
“Despite rapidly rising GDP expectations and recent upside inflation surprises, Fed Chair Powell
still appears determined to cut three to four times this…
