The US economy continues to surprise on the upside, buoyed by a strong consumer. This dynamic leads us to be more confident about US growth in 2024, which we have revised upwards from 1.4% to 2.3% year-on-year (YoY). This robust growth should be accompanied by continued disinflation, enabling the Federal Reserve (Fed) to begin adjusting the restrictive nature of its monetary policy during Q2 2024. This optimistic scenario does, however, highlight the risks of a possible reacceleration in the US economy and inflation. Against this backdrop, we remain positive on US equities, but cautious on the long end of the yield curve.

• More optimism for US growth
• The return of "Good news is good news”
• Although the risk of re-acceleration looms
• We're staying the course on disinflation
• Implications

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