US Economic Outperformance

The report anticipates continued US economic strength, with solid growth and cooling inflation forming the baseline scenario. This positive outlook is further bolstered by the expectation of policy changes that could benefit corporate earnings. While acknowledging that markets have already begun to price in this positive outlook, the report suggests there's still room for further upside. "Our baseline forecast remains essentially benign for the US: solid growth, cooling inflation and further non-recessionary rate cuts, alongside a range of policies that could be friendly to corporate earnings." This positive momentum is expected to contrast with the more challenging economic landscape faced by other developed markets, creating a divergence that favors the US.