In 2024, the US economy will be largely affected by the policies put in place by the current administration, as well as the overall attitude towards the most significant economic factors over the past several years.
Housing: The housing market is expected to remain strong in 2024, due to low inventory and high demand. Home affordability is likely to remain a challenge as home prices and mortgage rates are both expected to continue to rise.
Inflation: Inflation is expected to remain moderate in 2024, with Consumer Price Index rising in line with historical trends.
Interest rates: Interest rates are likely to remain low in 2024, though they will eventually be on the rise. Low rates have propelled economic growth and allowed businesses to borrow money at lower costs, but an eventual increase in rates could hinder growth.
Employment: The job market is expected to remain healthy in 2024, with both the labor force participation rate and employment rate continuing to inch up. Wage growth should continue to outpace inflation as well.
Technology: Technology is expected to continue to shape the economy in 2024, with improvements in areas such as automation, artificial intelligence, and machine learning likely to continue to drive economic growth.
Trade: Trade policy is expected to remain a hot-button issue in 2024, as protectionist policies by the current administration are likely to remain in place.
Overall, the 2024 US economy is expected to remain strong, though some risks to economic growth – such as inflation, interest rates, and trade protectionism – should be monitored.
