Current:Home > NewsCongressional Budget Office projects lower inflation and higher unemployment into 2025-DB Wealth Institute B2 Expert Reviews
Congressional Budget Office projects lower inflation and higher unemployment into 2025
View Date:2025-01-09 19:54:54
WASHINGTON (AP) — The Congressional Budget Office said Friday it expects inflation to nearly hit the Federal Reserve’s 2% target rate in 2024, as overall growth is expected to slow and unemployment is expected to rise into 2025, according to updated economic projections for the next two years.
The office’s Current View of the Economy from 2023 to 2025 report estimates that the unemployment rate will hit 4.4% in the fourth quarter of 2024 and remain close to that level through 2025.
Currently, the unemployment rate is 3.7%, according to the latest Bureau of Labor Statistics data.
Meanwhile, gross domestic product, otherwise known as the overall health of the economy, is estimated to fall from 2.5% in 2023 to 1.5% in 2024 — then rebound to 2.2% in 2025, according to the CBO projections.
Compared with its February 2023 projections, CBO’s Friday report predicts weaker growth, lower unemployment, and higher interest rates in 2024 and 2025.
But in a reminder that the U.S. economy has seldom behaved as anticipated through the pandemic and its aftermath, the employment forecast looks very different from the pace of hiring so far this year.
The jobless rate has now remained below 4% for nearly two years, the longest such streak since the late 1960s.
And on the inflation front, most economists expect growth to slow and inflation to continue to decline.
This week, the Federal Reserve kept its key interest rate unchanged for a third straight time, and its officials signaled that they are edging closer to cutting rates as early as next summer.
At a news conference, Federal Reserve Chair Jerome Powell said that officials are likely done raising rates because of how steadily inflation has cooled.
In keeping with the agency’s mandate to provide objective, impartial analysis, the report makes no policy recommendations, CBO director Phillip Swagel said in the report.
__
Associated Press reporter Chris Rugaber contributed to this report.
veryGood! (739)
Related
- Does the NFL have a special teams bias when hiring head coaches? History indicates it does
- Inter Miami's MLS playoff failure sets stage for Messi's last act, Alexi Lalas says
- What is ‘Doge’? Explaining the meme and cryptocurrency after Elon Musk's appointment to D.O.G.E.
- Beyoncé has released lots of new products. Here's a Beyhive gift guide for the holidays
- Prominent conservative lawyer Ted Olson, who argued Bush recount and same-sex marriage cases, dies
- UFC 309: Jon Jones vs. Stipe Miocic fight card, odds, how to watch, date
- Skiing legend Lindsey Vonn ends retirement, plans to return to competition
- It's Red Cup Day at Starbucks: Here's how to get your holiday cup and cash in on deals
- Ready-to-eat meat, poultry recalled over listeria risk: See list of affected products
- It's Red Cup Day at Starbucks: Here's how to get your holiday cup and cash in on deals
Ranking
- 'Serial swatter': 18-year-old pleads guilty to making nearly 400 bomb threats, mass shooting calls
- Bodyless head washes ashore on a South Florida beach
- College football Week 12 expert picks for every Top 25 game include SEC showdowns
- Vermont man is fit to stand trial over shooting of 3 Palestinian college students
- Rita Ora Says Liam Payne “Left Such a Mark on This World” in Emotional Tribute
- Florida State can't afford to fire Mike Norvell -- and can't afford to keep him
- 'Dangerous and unsanitary' conditions at Georgia jail violate Constitution, feds say
- Inter Miami's MLS playoff failure sets stage for Messi's last act, Alexi Lalas says
Recommendation
-
Wheel of Fortune Contestant Goes Viral Over His Hilariously Wrong Answer
-
Off the Grid: Sally breaks down USA TODAY's daily crossword puzzle, Good Try (Freestyle)
-
Olympic champion Lindsey Vonn is ending her retirement at age 40 to make a skiing comeback
-
Martin Scorsese on faith in filmmaking, ‘The Saints’ and what his next movie might be
-
MLS Star Marco Angulo Dead at 22 One Month After Car Crash
-
Dogecoin soars after Trump's Elon Musk announcement: What to know about the cryptocurrency
-
Demure? Brain rot? Oxford announces shortlist for 2024 Word of the Year: Cast your vote
-
Will Aaron Rodgers retire? Jets QB tells reporters he plans to play in 2025