"It wasn't the only sign of trouble. Job growth came to a near-halt over the summer. Deportations and restrictionist immigration are part of the story, along with the aging of the native-born workforce. But part of it is that companies are trying to get leaner. Inflation, meanwhile, has become the fire that will not be fully doused. While the sky-high inflation of 2022 is a thing of the past, inflation has been above the Federal Reserve's target 2% target every single month since March 2021."
"Reality check: It's important to remember, though, that the $30 trillion U.S. economy, for all its flaws, can weather a lot, at least at the macro level. It is, as RSM chief economist Joe Brusuelas puts it, a "dynamic and resilient beast." By the numbers: The headline data numbers have held up just fine, a trend punctuated by Tuesday's report that GDP rose at a 4.3% annual rate in Q3, amid strong consumer spending and the AI-investment surge."
The labor market has softened, with job growth nearly halting over the summer amid deportations, restrictionist immigration, an aging native-born workforce, and corporate efforts to get leaner. Inflation has remained above the Federal Reserve's 2% target every month since March 2021, keeping affordability top of mind for households. Tariff announcements in April rattled markets and raised recession odds. At the same time, GDP accelerated to a 4.3% annual rate in Q3 driven by strong consumer spending and AI investment, and the S&P 500 has risen more than 17% year-to-date, signaling macroeconomic resilience.
Read at Axios
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