Cycle Watch | August 2023: Growth on track despite headwinds
08/21/2023 — Over the past year, inflation’s drop from over 9% to 3% was relatively easy, but getting it down to the Fed’s 2% target will be much harder and likely take longer. While inflation rose in July after months of declines, core inflation, the Fed’s preferred gauge, matched its smallest monthly increase in nearly two years. Yet any further reductions in inflation will pressure tightness in the labor market and risk triggering a recession. Still-elevated inflation threatens the possibility of the Fed pulling off the elusive "soft landing.”
Author(s)
Mark Hackett
Chief of Investment Research, Nationwide Investment Management Group
Mark Hackett is the Chief of Investment Research for Nationwide’s Investment Management Group, bringing more than 20 years of experience in the asset management industry to the role.
Ben Ayers
Senior Economist
Ben Ayers is a Senior Economist with Nationwide Economics, supporting the company’s forecasting and macroeconomic analysis functions.
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