Markets Rally on Soft Landing Confirmation
The American economy expanded far more than expected in the fourth quarter, smashing market forecasts and delivering booming growth even as the lagging impact of one of history’s most aggressive tightening cycles hit home. Data released by the Bureau of Economic Analysis this morning showed the economy expanding 3.3 percent in the October-through-December period, topping market consensus that had been set closer to 2 percent, and exceeding estimates provided by the Atlanta Federal Reserve’s nowcasting model. On a full-year basis, output rose 2.3 percent, defying longstanding expectations for a slowdown and even a recession. Personal consumption rose 2.8 percent, slowing...