The Federal Reserve does not anticipate a recession in the near future, with economic growth projected to be stronger than previously expected in the coming years. The labor market remains strong, corporate earnings are robust, and the stock market continues to set records. Despite higher interest rates, the economy is showing resilience, with economists predicting continued strength in the years ahead. Fed officials expect three rate cuts this year, but interest rates are expected to settle at levels above near-zero rates seen prior to 2022.
The US economy displayed a strong GDP growth rate and a healthy job market in the previous quarters. Fed officials project growth rates of 2.1% in 2024 and 2% in 2025 and 2026. Although the pace of job market growth has slowed from the highs of 2021, unemployment remains low and payroll growth is steady. Jobless claims are still low, signaling a stable job market. Analysts attribute the economy’s strength to productivity gains and workforce structural changes.
While the economic outlook appears positive, unforeseen shocks could lead to a downturn. One potential risk is a stall in the descent of inflation, which could prompt the Fed to take measures to combat rising prices. A surprise in inflation data could lead to prolonged restrictive interest rates, impacting economic growth and potentially causing a recession. Despite the reduced risk of a recession, the potential for unexpected events poses a threat to the economy’s stability.
Reddit recently went public on the New York Stock Exchange, marking a significant moment for the social media company that has been in preparation since 2021. Trading under the ticker “RDDT,” Reddit’s shares surged on its debut, reaching a high market cap. The company’s performance on the stock market could set a precedent for other social media companies considering initial public offerings. Reddit’s entry into the stock market signals a new chapter for the long-established social media company.
Upcoming economic events include releases from the Chicago Fed on the National Activity Index for February and the US Commerce Department on sales of new single-family homes in February. Earnings reports from companies such as McCormick and GameStop are expected, along with data releases on durable goods orders, home prices, consumer sentiment, and GDP estimates. Fed officials will also deliver remarks, and markets will be closed on Good Friday. These events will provide further insights into the state of the US economy and potential future developments.
