The Resilience of the U.S. Economy

The U.S. economy showed unexpected resilience as 2024 began, defying recession predictions despite significant rate hikes. A surge in the labor market, aided by increased immigration, contributed to low unemployment rates while real wages and productivity experienced growth. Observers noted that credit availability remained stable and that major financial indicators showed no signs of strain, indicating a healthy economic environment. Many believed the Federal Reserve would pivot to stimulate growth as inflation began to ease, which was reflected in a robust performance of the S&P 500, climbing 33% since bearish sentiments peaked.