Navigating Wall Street's Immaculate Disinflation and Inflation News: A Goldilocks Economic Narrative

Nobel economist Paul Krugman suggests that Wall Street's dream of "immaculate disinflation" is becoming a reality, as inflation is coming down without sparking a recession. Despite pockets of gloomy sentiment, the economy is actually performing better than people think. The US job market remains resilient, with a low unemployment rate, and GDP saw strong growth. Krugman argues that the negative view of the economy is puzzling, as evidence shows it is currently performing well. Investors are optimistic about a soft-landing and expect positive returns for stocks in 2024, as cooling inflation may lead to the Federal Reserve loosening monetary policy.