The American economy ended 2024 on a solid note with consumer spending continuing to drive growth. The Commerce Department reported Thursday that gross domestic product — the economy's output of goods and services — expanded at a 2.3% annual rate from October through December. For the full year, the economy grew a healthy 2.8%, compared with 2.9% in 2023. The fourth-quarter growth was a tick below the 2.4% economists had expected, according to a survey of forecasters by the data firm FactSet.
Main Idea: The U.S. economy grew at a solid pace in the last quarter of 2024, but the Federal Reserve stayed cautious because inflation remained above target.
Key Points:
Higher inflation and slower Fed rate cuts can keep borrowing costs and prices high for households, borrowers, and small businesses.
Strong GDP growth and low unemployment support jobs, consumer spending, and business revenue.
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Named Federal Reserve Chair quoted on interest-rate policy and the economy’s strength.
Named political leader whose inherited economy and policy plans are discussed as affecting growth and prices.
Economist Paul Ashworth’s firm is cited for analysis and forecasts about GDP growth.
Referenced as a major central bank whose rate cut contrasts with the Federal Reserve’s stance.
Named economist quoted providing interpretation of the GDP data and outlook.
Mentioned as a source of fourth-quarter disruption due to a strike affecting growth.
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