Economy 9 things that will define the economy in 2024 Facebook Email Twitter LinkedIn Copy Link Read in app The Fed expects to lower interest rates three times next year. Inflation is almost at the Fed’s 2% inflation target, and interest rates are expected to fall in 2024. Many economists say the US has achieved the long-awaited “soft landing” due to a strong jobs market. GDP growth also surpassed expectations but is expected to slow next year. The economy was robust in 2023, with many economists saying the US will soon achieve the long-awaited ” soft landing .” But leading up to the 2024 presidential election , much of the country is still gloomy about the US economy. At the end of 2022, many leading economists and banks were predicting a recession by the end of 2023. However, inflation came down a lot amid steady job growth and a spike in manufacturing investment . Additionally, the racial wage and net worth gaps became smaller while consumer spending remained strong. On the flipside, mortgage rates remain elevated, student-loan payments restarted, and inflation remains high for many daily expenses such as food, shelter, and “fun” things like subscriptions and concerts. Shannon Seery Grein, vice president and economist at Wells Fargo, told Business Insider the bank is expecting a slight downturn in the economy in 2024, but nothing too painful. “We also look for the recent moderation in the labor market to continue and lead to outright layoffs by the middle of next year consistent with recession,” Seery Grein said. “That said, if the economy does indeed fall into recession next year, we anticipate the contraction to be mild by historic standards, largely due to the decent financial position of households and some labor-hoarding effects among businesses.” Economists are hoping for a […]
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