WEALTHTRACK Abby Joseph Cohen’s Outlook for Economy and Markets
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Sep 27, 2024 
Abby Joseph Cohen, a former U.S. Investment Strategist at Goldman Sachs, brings her wealth of knowledge to the table, sharing insights on the current economic landscape. She discusses the Federal Reserve's interest rate strategies in relation to inflation and potential recession impacts. Abby emphasizes the resilience of consumers and corporations while advising on mid-cap stocks for diversified investment. With an optimistic outlook on the U.S. economy, she stresses the importance of aligning investment strategies with economic conditions and maintaining a balanced portfolio.
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Fed Cut Was A Data-Driven Recalibration
- The Fed cut 50 basis points to signal it's monitoring inflation and jobs closely.
- Abby Joseph Cohen believes the move was appropriate given decelerating growth and better-controlled inflation.
Inflation Rate Fell But Price Levels Stay High
- Inflation has slowed dramatically from highs and is now around 2–2.5%.
- Cohen stresses prices remain high in level, so people feel the pain even as inflation rates ease.
Why She Didn't Predict A 2022 Recession
- In 2022 Cohen expected rate hikes but not a recession because consumers and corporations were financially strong.
- She credited Fed vigilance and healthy household and corporate balance sheets for avoiding a downturn.