A Soft Landing Looking Likely? US Economy Steady as Analysts Eye Rate Cuts

Despite recent layoff announcements, US job growth totaled 275,000 in February with unemployment rising to 3.90% which, despite the increase, is still low. Inflation (3.20% in Feb) continues to be persistent and above the target rate of 2.00%. With climbing unemployment and steadfast inflation expected from Q2 of 2024 to Q1 of 2025, Consensus expects the nation’s GDP growth rate to increase by 1.33% which is a low but steady level of growth. Similarly, Wells Fargo expects real GDP to be about 1.40% by Q4-2024 amid stronger consumer spending, a firmer hiring environment and downward trending inflation.