TBF

2.8% Growth Vs. 28% Recession Risk: The New Economic Landscape In 2024

Gross domestic product last quarter increased by 2.8%, a hair above average long-term growth. The Federal Reserve may have pulled off a soft landing in their fight against inflation. The Wall Street Journal survey puts the risk of recession over the next 12 months at just 28%. Real GDP grew at 2.7% in Q2 2024.

Above The Noise: Countdown To A Rate Cut

Data indicates that we can expect to see the first Federal Reserve interest rate cut soon. The implied rate suggests that the first cut may be coming in September. Value and small-cap stocks have tended to outperform growth stocks in the past. The first rate cut is expected to come soon.

More Good Inflation News: David Berson's Economic Brief

Inflation Remained Low In June

Rates Spark: Euro Rates Eyeing Quicker ECB Cuts

U.S. GDP Growth Beats Expectations, But Fails To Dent The Market's Faith In Rate Cuts

U.S. GDP Growth Beats Expectations, But Fails To Dent The Market's Faith In Rate Cuts. GDP grew an annualised 2.8% in second-quarter 2024. Core PCE deflator rose 2.9% annualised versus the 2.7% expectation.

Rates Spark: Weak PMIs Help Build The Case For Rate Cuts

Weaker eurozone PMIs have helped markets price in two more ECB rate cuts for 2024. US manufacturing PMI slipped back below 50 and new home sales weakened, but services PMI edged higher. We continue to view the environment as prone to more risk-off, higher volatility and lower market rates.

Winter (Rate Cuts) Is Coming

The 2024 deficit estimate has increased by $400 billion, a 27% rise from their estimate five months ago. The U.S. Deficit for 2024 is expected to be $2.0 trillion, 7% of our Gross Domestic Product. The CBO forecasts no recession for the next decade. The IMF has warned of runaway spending in the United States.