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According to the latest economic news, the US economy is currently in a period of expansion. This is evidenced by a number of indicators, including GDP growth, job creation, and consumer spending. The expansion is expected to continue into 2019, although at a slower pace than in 2018. This slowdown is largely due to the effects of the Trump tax cuts, which are set to expire at the end of the year. Despite this, the economy is still expected to grow at a solid pace, with most experts predicting GDP growth of around 2.5%.According to the latest economic news, the US economy is currently facing a number of challenges. These include the ongoing trade war with China, which is causing uncertainty and weighing on business investment, as well as the potential for a sharp slowdown in global economic growth. In addition, the US Federal Reserve has recently cut interest rates in an effort to boost the economy, but this has so far failed to boost confidence or spur activity. As a result, the US economy is currently facing a number of headwinds and it remains to be seen how it will perform in the months ahead.The U.S. economy added a healthy 225,000 jobs in January, easily topping expectations and helping to ease concerns that the economy might be losing momentum.
The unemployment rate ticked up to 3.6% from 3.5% in December, but that was due to more people entering the labor force in search of work. The so-called “real” unemployment rate, which includes discouraged workers and those working part-time for economic reasons, fell to 6.9% from 7.3% in December.
The solid job gains should help to allay fears that the economy might be headed for a recession. The job market has been remarkably resilient in the face of headwinds from the trade war with China, slowing global growth and waning business confidence.
While the job market remains strong, wage growth has been a persistent disappointment. Average hourly earnings rose just 0.1% in January and are up just 2.9% from a year ago. That’s barely ahead of inflation, which is running at a 2.3% pace.
Still, the overall picture remains one of an economy that is continuing to expand, albeit at a slower pace than last year. The economy grew at a 2.1% pace in the fourth quarter, down from 3.1% in the third quarter.The Federal Reserve is keeping interest rates low to support the U.S. economy, which is still recovering from the pandemic.
The Fed’s decision on Wednesday came as no surprise, as policymakers have signaled in recent weeks that they would keep rates near zero until inflation reaches their 2% target and the labor market improves further.
In a statement, the Fed said it expects to maintain its current policy stance “until these outcomes are achieved.”
The Fed also said it would continue its program of buying $120 billion in government and mortgage-backed securities each month.
The central bank’s decision was unanimous.
Inflation has been running below the Fed’s 2% target for years, and the pandemic has caused it to slow further.
The Fed has said it is willing to tolerate higher inflation in the near term as the economy recovers.
The labor market has also been slow to recover from the pandemic.
The unemployment rate fell to 6.3% in March, but it is still well above the pre-pandemic level of 3.5%.
The Fed’s decision to keep rates low is intended to support the economy by making borrowing cheaper and encouraging spending.
Low interest rates also make it easier for the Fed to buy assets and pump money into the economy.
The Fed’s next meeting is in June, and policymakers are not expected to make any changes to interest rates at that time.