From Nasdaq MarketSite:

The latest economic data suggests that inflation is on a sustained downtrend, with the U.S. economy growing at a solid 3% and core inflation right back at 2%. Despite these strong numbers, President Biden’s economic policies are not popular with the public, and the Federal Reserve had to raise the Fed funds rate to combat high inflation. This has caused pressure on consumers and businesses, impacting personal finances. Nobel laureate Paul Krugman hailed the economy’s performance, calling 2023 a miraculous year for high growth and falling inflation. However, Republicans have a different perspective on the economy’s health, according to YouGov. Despite these positive signs, Krugman warned that the lagged effects of rate hikes could potentially tip the economy into an unnecessary recession, urging a cautionary approach.

The iShares TIPS Bond ETF ended Friday’s session up 0.43% at $107.79, while the SPDR S&P 500 ETF Trust eased 0.13% to $487.41. This information offers a glimpse into the market’s response to the latest economic data and the potential implications for future inflation. The contrasting views and the market’s reaction illustrate the complexities of current economic conditions.



Read more: Paul Krugman Counters Nikki Haley’s ‘Economy In Shambles’ Comment: ‘2023 Was A Miraculous Year’