US GDP doubles expectations: recession a distant memory

The US economy continues to thrive thanks to high interest rates, with GDP data for the latest quarter doubling market expectations.
The US economy remains the most stable in the world, despite years of constant crisis and upcoming national elections.
GDP in the US grew 3.3% in the final quarter of 2023.
Wall Street had priced in a meager 1.5% growth, meaning the US economy more than doubled expectations.
For the full year 2023, US GDP increased by 2.4%, once again beating the initial forecast of 1.9% growth.
In fact, markets and analysts all believed that a recession was certain in 2023, if only for a few quarters.
The rapid increase in interest rates by the Federal Reserve, which reached 5.25 points, has been cited as the main culprit of an impending crisis.
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banks in less than 90 days fueled these fears.
The Federal Reserve also considered a recession inevitable, but continued to raise rates to fight inflation.
With the start of 2024, the battle against inflation is also almost over.
Consumer prices are falling very fast, with core inflation falling 1.8% from December 2022.
What to expect for 2024 The Federal Reserve is now looking ahead.
With recession almost certainly averted, the Fed is weighing when to start with rate cuts.
According to Fed members and analysts, 5 rate cuts could be implemented as early as 2024.
But markets shouldn't feel too optimistic about the future.
2024 is an election year in the United States, which means that even a mild (though unlikely) recession could oust Joe Biden from the White House.
Furthermore, the global geopolitical scenario is too unstable to make any predictions.
China is on a warpath against Taiwan, even as it grapples with its own internal problems.
The wars in Ukraine and the Middle East continue with no end in sight and could yet disrupt global supply chains in critical economic sectors.
read also USA-China, who wins in the economic war? The answer in 3 graphs 2024 will also be an election year for many major international players.
For example, whoever governs in the European Union, the United Kingdom and India will certainly change the global balance.
So far the United States has managed to manage the various crisis areas.
They keep the war in the Middle East localized, and the Biden administration is pushing to continue supporting Ukraine.
However, a Trump victory could pose a serious threat to the international balance.
Article published on Money.it international edition on 2024-01-26 13:00:00.
Original title: US GDP doubles expectations, powering through recession