U.S. Economy Defies Slowdown Predictions, But Inflation and Rate Hikes Still Loom
• America's economy continues to grow robustly, defying expectations of a slowdown • Consumers remain resilient thanks to excess pandemic savings and strong wage growth • Inflation has come down but there are risks it could reaccelerate • The Fed is contemplating interest rate cuts but some officials urge caution • Economic momentum complicates the policy outlook as rates may need to stay elevated