Larry Kantor

Jul 26, 2024 | worth.com | Bob Diamond |Larry Kantor

The U.S. economy has normalized after four years during which the effects COVID-19, and the policy stimulus that it generated produced an extraordinary business cycle that caught most analysts off guard. The Fed is likely to keep interest rates where they are at least through the summer, but there is now a good chance for rate cuts before yearend. While underlying inflation increased around 4% through April, prices barely rose in May and June.

Jun 10, 2024 | worth.com | Larry Kantor |Bob Diamond

COVID-19 and the subsequent policy stimulus have led to a business cycle that defies conventional expectations, continuing to surprise even the most seasoned analysts. Given the Federal Reserve’s decision to raise interest rates from zero to over 5% between March 2022 and July 2023, a recession was widely anticipated. However, the U.S. economy defied these predictions, growing by more than 2% in the first half of last year and accelerating to over 4% in the second half.

Feb 7, 2024 | worth.com | Larry Kantor |Bob Diamond

We’ve experienced wild swings in the economy, inflation, financial markets, and fiscal and monetary policy since COVID struck nearly four years ago. With the virus largely behind us, the market focus now is on how the economy and inflation evolve and what the Federal Reserve does in response. Economic forecasters and the Fed expect continued low inflation and a weak US economy.

Nov 30, 2023 | worth.com | Sean Captain |Lewis Schiff |Amanda Claypool |Larry Kantor

Nov 7, 2023 | worth.com | Bob Diamond |Larry Kantor

There has been nothing but good news this year on the U.S. economy, which has continued to grow solidly despite the biggest tightening in monetary policy in over 40 years. The Fed funds rate—the overnight interest rate for banks that is the Federal Reserve’s main policy tool—was lifted from zero in March of last year to over 5.25%. Yet that hasn’t hurt the unemployment rate, which remains below 4%, equivalent to full employment.