National Economy Snapshot

The National Economy

As of mid-2024, the economic outlook for the United States presents a mixed but cautiously optimistic picture, with GDP growth projected to stabilize around 2-2.5% annually. Unemployment rates have declined to pre-pandemic levels, hovering around 3.5-4.5%, driven by continued job creation across various sectors, particularly in technology, healthcare, and green energy.

Inflation remains a concern, though it has shown signs of moderating. The Federal Reserve's monetary tightening, including interest rate hikes, aims to curb inflation, which had surged to multi-decade highs.
CPI inflation moderated in July to 2.9%, year-over-year, potentially increasing the likelihood of an interest rate cut this fall, should the trend continue.

Consumer spending remains strong, buoyed by a resilient labor market and rising wages, although higher borrowing costs might dampen this momentum.

The housing market faces challenges with elevated mortgage rates affecting affordability, but demand remains strong due to demographic trends and limited housing supply. Corporate investment is expected to grow, particularly in technology and infrastructure, fueled by federal spending initiatives.

Global factors, such as geopolitical tensions and supply chain disruptions, pose risks to the outlook. Trade relationships and international economic conditions will significantly influence the U.S. economy.