![]() ![]() economy was “not too hot, not too cold, but just right” – ideal for all market participants. It’s believed that economist David Shulman first coined the phrase in his 1992 article “The Goldilocks Economy: Keeping the Bears at Bay.” At the time, the U.S. In other words, consumers and businesses flourish absent huge expansions or contractions. It’s not too hot to suffer runaway inflation, but not so cold that unemployment spikes.ĭuring Goldilocks periods, employment remains robust, growth is stable (but continuing) and the economy chugs along, rather than slams full steam ahead. Yet, these factors – alongside slowing but still-positive corporate profits – have some economists suggesting we could be enjoying a “Goldilocks economy.”Ī Goldilocks economy is an economy that is experiencing “just right” levels of growth. The housing market may be on the cusp of recession as demand (and prices) cool.Īnd experts say that the Fed could hike rates anywhere from 0.5% to 1% in September depending on inflation data. ![]() Inflation remains high amid Covid lockdowns in China, Europe’s brewing energy crisis, and ongoing supply chain snarls. At the same time, more workers entered the labor market, slightly increasing the unemployment rate from 3.5% to 3.7%. The numbers, though exceeding expectations, fell short of July’s stratospheric performance with some 315,000 jobs added. Last week, the Labor Department released its August jobs report.
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