Episode 46. US Soft Landing

The Federal Reserve started a rate hike policy on March 17, 2022, that continued throughout the year, targeting to lower inflation based on several indicators. Investors are concerned that higher interest rates will drive the US economy into a recession. Retail sales have declined in the past two months, which suggests that the advance estimate for third-quarter GDP will be lower than previously thought, with personal consumption expenditures less supportive of growth. Additionally, the housing market has seen a decline in prices and transactions, which typically represents the largest expenditure of consumer spending, and the relevance of this is that it may impact the US economy, stock market, and corporate profits.