Cooling Inflation and Falling Gas Prices Boost 2024 Economic Outlook
• Inflation cooled dramatically in 2023, down from 9.1% to 3.1%, and is expected to hit the Fed's 2% target by end of 2024
• Gas prices plunged in 2023 and are projected to fall further in 2024, saving consumers $32 billion
• The Fed is likely to start cutting interest rates in 2024, bringing relief to consumers and boosting growth
• Job market remains strong with unemployment at 3.7% and layoffs near 50-year lows
• As inflation calms, real wage growth is expected to pick up in 2024, supporting consumer spending