The U.S. economy grew at a 2.8% annual rate in the third quarter, slightly down from the previous quarter’s 3% growth. Despite high interest rates, consumers have continued to drive growth, with the economy expanding despite the Federal Reserve’s efforts to curb inflation. The Conference Board reported a rise in consumer confidence, with fewer Americans expecting a recession in the next year.
However, the job market has shown signs of slowing, with job openings decreasing and employers adding fewer jobs compared to previous years. Hurricanes and a strike at Boeing have also impacted job growth. The Federal Reserve recently cut its benchmark rate in response to concerns about the job market, with additional rate cuts expected in the coming months to lower borrowing rates.
Inflation has decreased from a high of 9.1% to 2.4%, but prices remain elevated compared to pre-pandemic levels. Vice President Kamala Harris, a presidential candidate, faces challenges in addressing inflation as she competes against former President Donald Trump, whose policies are seen as potentially worsening inflation by mainstream economists.
Overall, the U.S. economy continues to show resilience, with strong consumer spending driving growth despite the challenges of high interest rates and inflation. The Federal Reserve’s efforts to stimulate the economy through rate cuts may provide some relief to consumers and businesses in the coming months.
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