U.S. Economic Growth Cools in Late 2022, Moderation Expected Through 2023 as Rates Bite
• U.S. economic growth likely slowed at the end of 2022, with GDP estimated to expand 2% in Q4 down from 4.9% in Q3
• Growth expected to continue cooling in 2023 due to high inflation, interest rates, though economy proving resilient
• Job growth moderating, housing market downturn worsened, signs of consumer spending slowing
• Higher interest rates working through economy, expected to cause further cooling in months ahead
• Odds increased for Fed to engineer soft landing with rate cuts in 2024, though recession risks remain around 40%