US Economy Shows Remarkable Resilience in 2023, Inflation Cools Dramatically

Federal Reserve expected to deliver rate cuts in 2024 as US stocks end the year with a bang and unemployment remains low.

The US economy showed remarkable resilience in 2023, overcoming fears of recession, war in Ukraine, oil price shocks, and political dysfunction.
Inflation cooled dramatically, with consumer prices increasing by 3.1% year-over-year in November, down sharply from 9.1% in June 2022.
The Federal Reserve is expected to deliver rate cuts as soon as March 2024, which would lower the cost of mortgages, car loans, and credit card balances.
US stocks ended the year with a bang, with the S&P 500 rallying nine weeks to end the year, and the Nasdaq spiking 43%, narrowly missing its best year in two decades.
Despite the Fed’s rate hikes, the unemployment rate is sitting at just 3.7%, near a half-century low, and initial jobless claims remain historically low at just 218,000.