US Wage Growth: A Prop for a Soft Landing

The U.S. economy received a boost with a solid jobs report in November, showing a 3.7% unemployment rate and the addition of 199,000 jobs. However, concerns remain about the potential impact of the Federal Reserve's interest rate increases and the possibility of a recession. The key to a soft landing lies in consumer behavior and inflation, with the University of Michigan's consumer sentiment survey indicating a drop in inflation expectations. While some experts argue for a "rolling recession" scenario, navigating peaks and valleys will be crucial to achieving a soft landing. The Fed's stance on interest rates and inflation will play a significant role, as will the strength of the labor market and consumer confidence.