Stubborn inflation poses risk to US forecasts for economic growth


Powell at a press conference in Washington. The Fed chair says he is less confident US inflation will fall over the course of the year. — Reuters

NEW YORK: So far, 2024 isn’t going quite how it was supposed to for the United States economy: Inflation has been higher than expected and household spending seems to have lost some momentum.

Those trends represent a new risk for economic growth forecasts that were upgraded around the turn of the year, largely on the view that rapid disinflation would help bring about rising real incomes and lower borrowing costs.

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