John Fahey: Will the recent economic outperformance by the US last?

The US economy expanded by 2.3% over the first three quarters compared to just 0.6% in the UK and the eurozone

Various inflation metrics for the US economy show price pressures have eased over the course of this year.

The US economy has registered a stout performance over the past year. This is despite an aggressive pace of rate hikes from the US Federal Reserve, leading many commentators to become more confident of a “soft landing” for the economy.

One reason for the stronger US performance is that it has been less exposed to the fallout from the war in Ukraine and the associated big jump in energy prices, which has had a bigger impact on the main European economies. Another has been the expansionary stance of US fiscal policy.