Inflation Cools, Jobs Steady, Growth Positive As Economy Finds Footing In 2023
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Inflation slowed significantly in 2023, falling from over 8% to around 3%, nearing the Fed's 2% target. The Fed plans 3 rate cuts in 2024 to further stimulate the economy.
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The job market could continue slowing in 2024 but unemployment should remain low by historical standards, around 4.4%.
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GDP growth exceeded expectations in 2023 and is forecast to slow but remain positive in 2024, buoyed by resilient consumer spending.
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Most Americans still feel worried about the economy, though sentiment has rebounded somewhat recently as inflation falls.
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Inequality fell in 2023 as lower-income workers saw stronger wage growth, but gaps remain large, especially across racial lines.