A retirement rule that affects everyone (12 27 23)

Author

Anthony Hazzard
December 27, 2023

We at Team Clark hope you’re enjoying a wonderful holiday season. As we head toward 2024, there’s renewed optimism in the American economy. Find out why later in this email.

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💵 The U.S. Economy Enters 2024 Full of Growing Optimism

Inflation and interest rate hikes have defined the U.S. economy since summer 2021.

But like the Bob Dylan song, “The Times They Are a-Changin'.” Thanks to an early Christmas gift in the way of new inflation numbers last week, it seems that the U.S. economy is finally normalizing.

CPI, an oft-cited measure of inflation, peaked at 9.1% in June 2022. It fell to 3.1% in November 2023, the second-lowest mark in 32 months. The CPI number has fallen in 14 of the last 17 months.

According to the Wall Street Journal, the Fed’s “preferred” inflation measure equaled 2.6% in November, getting ever so close to the long-stated 2% target.

“Many economists now say the economy will likely cruise to a so-called soft landing in which inflation returns to the Fed’s target without a recession,” according to the WSJ article.

“The U.S. economy defied predictions that it would tip into recession in 2023, largely because inflation fell so much while consumers kept up their spending despite the Fed’s aggressive tightening policy, which pushed interest rates up to the highest level in 22 years.”

For months, Clark has predicted that interest rates have reached their local peak. And this latest month of data is the strongest indication yet that the Fed will be able to strongly consider cutting rates in 2024.

Don’t expect a return to near-zero interest rates, 2% mortgages becoming commonplace or savings accounts cratering to pitiful interest rate offerings again.

But, pulling from the WSJ article again, the Fed is “winning its fight over inflation, boosting American spirits and offering greater reassurance that the U.S. economy can avoid a recession while bringing prices under control.”

That’s optimistic stuff for us as we enter 2024.

📊 Stat of the Day

💸 3: Number of 0.25% interest rate cuts the Fed is signaling for 2024. There are no guarantees. But it signals a dovish shift in the Fed’s tone and could lead to an ongoing stock market recovery.

💰️ Deal Alert: Today’s Top Deals
Sale
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🎙️ Podcast

It’s cold out in many parts of the country. Clark has some good news on the home heating front

☎️ Need Money Help?

The Team Clark Consumer Action Center is a free helpline that can help you navigate your money questions. Call 636-492-5275. Visit clark.com/cac for more information.

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