The two aims shouldn’t compete, they say.

“We want to see strong growth and a strong labor market,” said Federal Reserve Chair Jerome Powell.

Many investors see big companies as healthy and want to get into the market before the Federal Reserve cuts interest rates.

Greenspan ignored political pressure to cut interest rates so that he could bring down inflation, says author Sebastian Mallaby.

The assumption is that the economy will chug along and that borrowing costs will fall. But they might not. What makes these riskier stocks attractive?

“Wage growth now is greater than inflation,” Bostic says. “But I don’t think people feel like they’ve caught up all the way and that’s just going to take some time.”

We asked economists to give us a word of the year for 2023 that summed up the zeitgeist for monetary policy.

“Inflation has eased over the past year but remains over our longer run goal of 2%,” Powell said

The Federal Reserve and others will update monetary policy, balancing inflation with the recession risk. Investors hope for rate cuts.

Consumers are now more upbeat, convinced inflation is heading down, according to the University of Michigan Consumer Survey for December.