A big reason the term is popping up so often is that it helps explain an unusually muddy and convoluted period for the US economy. Growth appears solid, yet hiring is sluggish, and the unemployment rate has ticked up. Overall, consumer spending is still rising, but Americans are less confident. AI-related data centre construction is soaring while factories are laying off workers and home sales are weak. And the stock market still hovers near record highs even as wage growth is slowing.
It also captures ongoing concerns around affordability, which is much more of a concern for middle and lower-income households. Persistent inflation has received renewed political attention after voter anger over costly rents, groceries, and imported goods helped Democrats win several high-profile elections last month.
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