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The U.S. economy grew by 3.1% in 2023, according to a report from the Commerce Department. This growth was driven by strong consumer spending and a resilient labor market. Economists had previously predicted a recession and projected only 0.2% growth for the year. However, consumer spending remained strong, and the economy exceeded expectations. The expansion is expected to continue in 2024, although at a slower pace. The Federal Reserve may implement interest-rate cuts to support the economy, but slower hiring and increased strain on Americans who have depleted their pandemic-era savings could pose challenges. [Extracted from the article]

At the annual meeting of the American Economic Association, economists expressed surprise and relief over the U.S. economy's soft landing, with tamed inflation and no recession. However, they remain concerned about the future, as there is little expectation that growth will improve beyond pre-pandemic levels. The U.S. recovery has been stronger than other developed countries, attributed to the country's focus on providing pandemic emergency support to individuals rather than firms. While some economists are optimistic about a soft landing, others caution that inflation could pick back up and reverse progress. In the long term, economists doubt that returning to pre-pandemic trends will boost growth, and instead suggest sustained boosts to productivity through artificial intelligence, hybrid work arrangements, and increased immigration. The implementation of technology and the preservation of free markets are seen as crucial for future growth, while retrenching globalization and degraded trade ties are viewed as negative factors. [Extracted from the article]

According to data from job-listing site Indeed, total job postings at the end of 2023 declined by over 15% compared to the previous year. However, job postings are still up by more than a quarter from their levels before the pandemic. The hiring frenzy and worker shortages that characterized the earlier stages of the pandemic recovery are fading, even though unemployment remains low. Economists are hopeful for a "soft landing" for the U.S. economy. Sectors such as nursing, child care, food service, and bars saw strong hiring in 2023, while demand for workers in other sectors slowed. Wage gains at the lower end of the pay scale have been faster due to persistent demand for in-person workers, but a slower economy and consumer belt-tightening could dampen these gains in 2024. The rate of workers quitting their jobs has declined, indicating less certainty about the labor market or greater satisfaction with current roles. Federal Reserve Chair Jerome Powell stated that the labor market has come back into balance, with indicators such as job openings, labor-force participation rates, and the quits rate showing improvement. Layoffs have remained low, and employers are holding on to workers. However, continuing unemployment claims have risen, suggesting that some individuals are struggling to find new jobs quickly. [Extracted from the article]

According to the Wall Street Journal, forecasters predict that unemployment will increase and hiring will slow in 2024, which could help the economy achieve a soft landing. The labor market in the United States has cooled off, but it is still generating jobs at a faster rate than before the pandemic. Factors contributing to this cooling trend include the Federal Reserve's interest rate hikes, industries reaching pre-pandemic employment levels, increased availability of workers through immigration and people rejoining the workforce, and a decrease in job hopping. Job growth has become concentrated in industries such as healthcare, social assistance, leisure and hospitality, and state and local government. This less dynamic labor market has helped slow down wage growth, which is a concern for the Federal Reserve. Temporary hiring has also been on a downward trend, which is seen as a warning sign for the labor market. However, there are reasons for optimism, such as the labor market still producing jobs at a faster pace than before the pandemic and resilient consumer spending. Companies are also hesitant to lay off workers due to labor shortages and high turnover costs. [Extracted from the article]

Millions of student loan borrowers in the United States are facing logistical challenges and frustrations as they resume making payments for the first time since 2020. Many borrowers have experienced long wait times, conflicting information, and surprise bills. These issues have complicated President Biden's efforts to gain credit for reducing student debt. The federal government is also investigating allegations of poor customer service by loan servicers. The Education Department has acknowledged the challenges and risks associated with transferring loans. The White House has not addressed the issues faced by borrowers but remains committed to providing additional relief. [Extracted from the article]

Despite record home prices, economists predict that housing will actually drag down inflation in 2024. While consumer prices rose 3.1% in November, the biggest obstacle to reaching the Federal Reserve's target of 2% inflation is shelter, which rose 6.5% in the year through November. However, the inflation rate for shelter is expected to slow due to cooling rents, which have fallen to 3.3% through November. This lag in rent data, along with the increase in multifamily supply, is anticipated to put downward pressure on inflation next year. [Extracted from the article]

Inflation in the United States has stabilized at levels below last year's high but still above pre-pandemic levels, according to the Labor Department. The consumer-price index rose 3.1% in November from a year earlier, slightly slower than October but higher than expected. While the pace of improvement is mildly disappointing, economists believe that trends remain favorable. Treasury Secretary Janet Yellen stated that inflation is coming down and expects it to gradually decline to levels consistent with the Federal Reserve's target. [Extracted from the article]

A healthcare hiring boom is helping to offset weaker job growth in other sectors of the US economy, potentially preventing a recession. Healthcare providers accounted for 30% of US job gains in the six months leading up to October, despite making up less than 11% of total employment. The aging population and the ongoing impact of Covid-19 are contributing to widespread worker shortages and increased demand for healthcare services. However, the industry is also facing challenges, such as labor shortages and high turnover rates. [Extracted from the article]

More Americans are filing for bankruptcy to eliminate their student debt, following a policy change by the Biden administration that made it easier for borrowers to apply for bankruptcy. The number of borrowers using this new process has increased, with 632 borrowers using it from November 2022 to September 2023. The Department of Justice expects these numbers to continue to rise as more lawyers and borrowers become aware of this option. The Biden administration's efforts to forgive debts for eligible student borrowers include the bankruptcy policy shift, which is part of their larger plan for debt forgiveness. [Extracted from the article]

President Biden announced $9 billion in student debt forgiveness for 125,000 borrowers, using existing programs that allow the government to waive debt for certain borrowers. This comes after the Supreme Court blocked the administration's more ambitious plan to cancel up to $20,000 in student debt for borrowers earning less than $125,000 a year. The current batch of forgiveness targets borrowers enrolled in public-service and income-based loan-repayment programs, as well as borrowers with disabilities. The Biden administration has made changes to these programs, which have existed for decades, in an attempt to provide relief to borrowers who have not received the entitled benefits. Republicans argue that the administration lacks the legal authority to make these adjustments. Including the latest cancellations, the administration has now wiped out $127 billion in student debt. [Extracted from the article]

Keywords: photo-commission; North America; United States; Economic Performance/Indicators; Economic News; Political/General News; Higher Education Costs; Education; Personal Finance; Student Loans EN photo-commission North America United States Economic Performance/Indicators Economic News Political/General News Higher Education Costs Education Personal Finance Student Loans N.PAG N.PAG 1 09/20/23 20230918 NES 230918 Households are cutting back, worrying largest U.S. retailers The restart of student-loan payments could divert up to $100 billion from Americans' pockets over the coming year, leaving consumers squeezed and some of the nation's largest retailers fearing a spending slowdown. Starting Oct. 1, tens of millions of student-loan borrowers will need to make payments averaging between $200 and $300 each month. [Extracted from the article]

Inflation, gfx-contrib, Economic Performance/Indicators, Employment/Unemployment Figures, Monetary Policy, Interest Rates, Political/General News, General Labor Issues, SYND, Economic News Keywords: inflation; gfx-contrib; Economic Performance/Indicators; Employment/Unemployment Figures; Monetary Policy; Interest Rates; Economic News; Political/General News; General Labor Issues; SYND EN inflation gfx-contrib Economic Performance/Indicators Employment/Unemployment Figures Monetary Policy Interest Rates Economic News Political/General News General Labor Issues SYND N.PAG N.PAG 1 08/08/23 20230805 NES 230805 Unemployment rate falls to 3.5%, near a half-century low, and wage growth holds steady at elevated level The U.S. economy added 187,000 jobs in July, slower than the average monthly pace for the first half of this year, the Labor Department said Friday. [Extracted from the article]

Inflation, gfx-contrib, Economic Performance/Indicators, Employment/Unemployment Figures, Interest Rates, Monetary Policy, SYND, WSJ-PRO-WSJ.com, Red Robin Gourmet Burgers, Economic News Keywords: inflation; gfx-contrib; Economic Performance/Indicators; Employment/Unemployment Figures; Monetary Policy; Interest Rates; Economic News; SYND; WSJ-PRO-WSJ.com; Red Robin Gourmet Burgers EN inflation gfx-contrib Economic Performance/Indicators Employment/Unemployment Figures Monetary Policy Interest Rates Economic News SYND WSJ-PRO-WSJ.com Red Robin Gourmet Burgers N.PAG N.PAG 1 06/06/23 20230603 NES 230603 Employers added 339,000 jobs last month; unemployment rate rose to 3.7% Hiring remained strong in May as the U.S. added 339,000 jobs. [Extracted from the article]

Keywords: inflation; gfx-contrib; Economic Performance/Indicators; Inflation Figures/Price Indices; Monetary Policy; Interest Rates; Economic News; Consumer Price Index; SYND; WSJ-PRO-WSJ.com EN inflation gfx-contrib Economic Performance/Indicators Inflation Figures/Price Indices Monetary Policy Interest Rates Economic News Consumer Price Index SYND WSJ-PRO-WSJ.com N.PAG N.PAG 1 03/16/23 20230315 NES 230315 Consumer prices rise 6% from year earlier, smallest annual gain since September 2021 Graph: Inflation has cooled after a peak last year, but remains high. Inflation, gfx-contrib, Economic Performance/Indicators, Inflation Figures/Price Indices, Monetary Policy, Interest Rates, Economic News, SYND, WSJ-PRO-WSJ.com, Consumer Price Index. [Extracted from the article]

Fed officials could see the recent pace of wage growth as still elevated given the central bank has a 2% inflation target, and assuming productivity grows around 1% to 1.5% a year. Keywords: inflation; Economic Performance/Indicators; Monetary Policy; Interest Rates; Economic News; SYND; WSJ-PRO-WSJ.com; Hasbro; HAS; Chipotle Mexican Grill EN inflation Economic Performance/Indicators Monetary Policy Interest Rates Economic News SYND WSJ-PRO-WSJ.com Hasbro HAS Chipotle Mexican Grill N.PAG N.PAG 1 02/06/23 20230201 NES 230201 Data leaves central bank on track to slow interest-rate increases again this week Graph: The Washington headquarters of the Federal Reserve, which will consider the pace of any coming interest-rate increases during a two-day meeting this week. [Extracted from the article]