UNITED STATES NEWS

Congressional Budget Office predicts slower economic growth and 4.7% unemployment into 2024

Jul 26, 2023, 11:12 AM | Updated: 11:48 am

WASHINGTON (AP) — The Congressional Budget Office reported Wednesday that economic and job growth so far this year has been stronger than forecast in February, but an updated outlook sees parts of the economy as weakening through 2024.

The latest 10-year budget and economic outlook from the nonpartisan office shows how difficult it is to figure out where the United States is going in the wake of the pandemic. Many economists and investors were caught off guard as Federal Reserve interest rate increases, intended to combat high inflation, have not led to mass layoffs and a recession. Rather, growth and hiring have stayed relatively solid.

The CBO said it expects rates to continue to rise, as well as slower growth in the gross domestic product for the rest of this year and unemployment reaching 4.7% by the end of 2024.

In February, the agency projected that the unemployment rate would jump to 5.1%. It currently stands at 3.6%. The CBO now estimates that rate will end the year at roughly 4.1%.

Consumer spending is expected to flag later this year and labor force participation to decline as employers need fewer workers.

In a bright spot, inflation is expected to decline due to actions by the Fed to tame price increases, which rose at the highest annual pace in four decades in June of last year. The central bank has tried to reduce inflation by raising its benchmark interest rates. The Fed on Wednesday raised its key rate for the 11th time in 17 months, from roughly 5.1% to 5.3%, its highest level since 2001.

The CBO issues projections that are generally more pessimistic than those of other forecasters such as the Fed. The latest report acknowledges that uncertainty, saying “projections are highly uncertain, and many factors could lead to different outcomes.”

United States News

Tupac Shakur, left, and Death Row Records founder Marion "Suge" Knight attend a voter registration ...

Associated Press

Witness charged with murder in 1996 shooting death of rapper Tupac Shakur

One of the last living witnesses to the fatal drive-by shooting of rapper Tupac Shakur in Las Vegas was charged with murder Friday in the 1996 killing.

1 hour ago

Associated Press

A child sex abuse suspect kills himself after wounding marshals trying to arrest him, police say

IRMO, S.C. (AP) — A man wanted by police for child sex abuse crimes shot and killed himself Friday after wounding two federal marshals trying to arrest him at a South Carolina hotel, investigators said. A special team of U.S. Marshals was trying to arrest George Curtis at an extended stay hotel near Columbia when […]

2 hours ago

Associated Press

Baltimore Archdiocese says it will file for bankruptcy before new law on abuse lawsuits takes effect

BALTIMORE (AP) — The Archdiocese of Baltimore announced Friday that it filed for Chapter 11 reorganization days before a new state law goes into effect removing the statute of limitations on child sex abuse charges and allowing victims to sue their abusers decades after the fact. The step will “allow the archdiocese to equitably compensate […]

2 hours ago

FILE - Jeffrey Clark, Assistant Attorney General for the Environment and Natural Resources Division...

Associated Press

Bail bondsman charged alongside Trump in Georgia becomes the first defendant to take a plea deal

ATLANTA (AP) — A bail bondsman charged alongside former President Donald Trump and 17 others has become the first defendant in the Georgia election interference case to accept a plea deal with prosecutors. Scott Hall pleaded guilty in court on Friday to five counts of conspiracy to commit intentional interference with performance of election duties, […]

2 hours ago

Associated Press

Navy to start random testing of SEALs, special warfare troops for performance-enhancing drugs

WASHINGTON (AP) — The Navy will begin randomly testing its special operations forces for steroids and other performance-enhancing drugs beginning in November, taking a groundbreaking step that military leaders have long resisted. Rear Adm. Keith Davids, commander of Naval Special Warfare Command, announced the new program Friday in a message to his force, calling it […]

4 hours ago

Associated Press

Iowa book ban prompts disclaimers on Little Free Library exchanges

WEST DES MOINES, Iowa (AP) — State restrictions on books that can be made available to Iowa students have prompted some Des Moines-area school districts to post disclaimers on Little Free Libraries. Earlier this year the Iowa Legislature approved a law that bans books that describe sex acts from libraries and classrooms, forcing school districts […]

4 hours ago

Sponsored Articles

...

DAY & NIGHT AIR CONDITIONING, HEATING AND PLUMBING

Importance of AC maintenance after Arizona’s excruciating heat wave

An air conditioning unit in Phoenix is vital to living a comfortable life inside, away from triple-digit heat.

...

re:vitalize

When most diets fail, re:vitalize makes a difference that shows

Staying healthy and losing weight are things many people in Arizona are conscious of, especially during the summer.

...

Ability360

At Ability360, every day is Independence Day

With 100 different programs and services, more than 1,500 non-medically based home care staff, a world-renowned Sports & Fitness Center and over 15,000 people with disabilities served annually, across all ages and demographics, Ability360 is a nationwide leader in the disability community.

Congressional Budget Office predicts slower economic growth and 4.7% unemployment into 2024