Part 7/13:
Shifting focus to macroeconomic trends, the analysts delve into inflation and employment data. They observe that wage growth—up about 5% annually—is the primary inflationary pressure, with little evidence of inflation in housing, goods, or groceries. They speculate that a slowing jobs market might reduce wage pressures, but overall inflation remains contained around 2-3%.
Further, they discuss monetary policy implications, suggesting the Federal Reserve is almost certain to cut interest rates by a quarter percentage point in upcoming meetings. Lower rates could benefit consumer borrowing, homebuilding, and manufacturing sectors, boosting economic activity and potentially offsetting earlier concerns about stagnation.