Resilient economic momentum. Encouraging leading indicators. Recession risks averted. Inflation close to Fed target. 1st rate cut in May. Positive environment for USD assets. Beware of high PEs. USD winner.

Key points

• US economy maintains good momentum at start of 2024
• No recession, but a gradual slowdown
• Steady improvement in leading indicators
• Declining tension in the labor market
• 0.25% cut in key rates in May?
• Inflation nears Fed target
• Favorable environment for USD bonds
• The dollar remains a winning currency
• Beware of generous stock market valuations

Discover an extract from our weekly analysis below:

Full version