Resilience of Economies and the Future Cutting Cycle

In this chapter, they discuss the resilience of the economy and how supply pressures have started to abate in 2023, leading to a slowing of inflation. They also mention that central banks have stopped raising interest rates and the market is now considering what the future cutting cycle will look like. They share optimism about the labor market and the more normal state of the economy, but they are keeping a close eye on the labor market and the credit market for potential cracks.