Economy Grows Despite High Interest Rates

You might think high interest rates would slow down the economy. But surprisingly, the U. S. economy grew at a steady 2. 8% pace from July through September. Consumers were the big spenders, driving growth even with higher interest rates. While business investments cooled off a bit, exports picked up speed. The good news? Inflation is starting to ease, which is great for the Federal Reserve. They’re likely to lower interest rates soon, which could help businesses and consumers even more. Despite all this, jobs are not booming like they used to. The job market has lost some steam, with fewer openings now than a few years ago. Natural disasters and strikes didn’t help, either. Economists think this slowdown is temporary, though. Inflation is still high compared to before the pandemic, which could affect the election. But most experts agree that policies to fight inflation might not be the best for voters. The Federal Reserve is watching the economy closely. They recently cut interest rates and might do so again. Their goal? To make it easier for people and businesses to borrow money. So, the economy might be doing better than expected, even with challenges.