The Daily Money: Could lower inflation trigger a recession?
Good morning! Did you make it through the Deep Freeze? We survived, although some aging water pipes in our neighborhood did not.
It's Daniel de Visé with your Daily Money.
Could the big inflation slowdown trigger a recession this year?
On its face, Paul Davidson writes, the idea may sound laughable. Easing inflation has brought relief to consumers. And it has spurred Federal Reserve officials to signal they’re probably done hiking interest rates and tentatively expect to cut them three times in 2024. That has propelled the stock market to new highs.
But some economists reckon the drop-off in price increases, combined with softening consumer demand, will narrow corporate profit margins. And that could prompt more companies to lay off workers and spark a mild downturn.
The stock market is up: It's a good moment to check your 401(k) balance
The S&P 500 ended last week at a record high, Bailey Schulz writes, welcome news for Americans’ retirement accounts.
The benchmark index closed up 1.2% Friday to beat its previous record from January 2022. The Dow Jones Industrial Average, which surpassed its 2022 peak last month, also closed at a new record Friday, and the Nasdaq Composite climbed 1.7%.
The milestones follow major stock market declines in 2022, Wall Street’s worst year since the Great Recession. At the time, investors were concerned about high inflation, high interest rates and a potential recession, and the S&P 500 dipped about 20%.
“It took more than two years, but the S&P 500 finally made it back to new all-time highs,” said Ryan Detrick, chief market strategist at financial services firm Carson Group. “This is a great reminder to investors that although we’ve seen many worries and concerns over the past two years, investors are usually rewarded over time.”
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Attention, cocktail-party patrons: The Centers for Disease Control announced last week that a recall of charcuterie meats for Salmonella contamination has been widened, including a new brand sold at Costco.
The recall has been expanded to include all lots of the "Busseto Foods Charcuterie Sampler" sold at Sam's Club and all lots of "Fratelli Beretta brand Antipasto Gran Beretta" sold at Costco, James Powel writes.
The outbreak has sparked 23 new illnesses and five new hospitalizations, bringing the totals up to 47 and 10 respectively across 22 states. The Center warned that these numbers are likely undercounts.
The CDC recommends that all packages of the affected products should be thrown away and that any surfaces that have come into contact with the packages be washed with hot water and soap.
About The Daily Money
Each weekday, The Daily Money delivers the best consumer news from Paste BN. We break down financial news and provide the TLDR version: how decisions by the Federal Reserve, government and companies impact you.
Daniel de Visé covers personal finance for USA Today