Posted 12/16/2023, 12:20:32 PM
CBO Report Forecasts Economic Slowdown, Rising Unemployment in Coming Years
- CBO report predicts rise in unemployment rate from 3.9% to 4.4% in 2024, meaning millions will lose jobs
- Attributes deterioration to weaker consumer spending, investment, exports outweighing positive impacts of higher govt spending, lower taxes
- Projections consistent with tightening labor market trends, scarcity of opportunities
- Fed also expects economic slowdown, GDP growth dropping to 1.4% in 2024 before rebounding, unemployment rising to 4.1%
- If recession occurs in 2024, expected to be mild given strong economic fundamentals, no major shocks