Part 2/8:
The illusion of a stable economy appeared towards the end of 2023, rallying optimism that allowed the Federal Reserve to adopt a more hawkish approach toward inflation. Yet, it has become increasingly clear that this recovery was unsustainable. As demand surged artificially in late 2024, evidence now suggests we are experiencing a reevaluation phase; the 'rug' is being pulled from under the stabilized economy narrative. Recent data from the Conference Board indicated that consumer confidence plummeted significantly, with their index reflecting the steepest monthly decline since August 2021. This drop is particularly concerning as the expectations index now indicates that confidence has settled deep into recession territory.