Economy Shows Resilience But Prolonged High Rates To Limit Near-Term Relief

• Q4 GDP growth revised down slightly to 3.2% from 3.3% originally estimated, showing economic resilience • Stronger growth pushes Fed's timeline for interest rate cuts further out, delaying rate relief • Prolonged high rates will likely keep mortgage rates from dropping much in the first half of 2023 • Ongoing inflationary pressures like supply chain disruptions add upside risk that prices remain elevated
• Consumers less resistant to price hikes now, boosting demand across sectors like housing and autos