Good morning.
If generative AI was the top business story of 2023, the buoyant American economy has to rank as No. 2. GDP grew at a stunning 5.2% in the third quarter, and while it likely slowed in the current quarter, it shows no sign of falling off a cliff. Meanwhile inflation miraculously moderated to just 3% in November—above the Fed’s 2% target, but not by much.
I’ve been among those who criticized the Fed for moving too slowly against inflation. Plenty of others have taken the opposite view, saying rate hikes were too aggressive. But if I were Fed Chairman Jerome Powell, I’d celebrate this holiday season. So far, the Fed seems to have gotten it just right.
