How Is the Economy Doing?
The current economy is defined by strong economic growth, a softening labor market and slowing inflation.
The state of the U.S. economy is strong despite inflation remaining elevated. The economy is expanding at a crisp pace, the labor market is loosening slightly and inflation is slowing from its peak. The Federal Reserve looks at several economic indicators — along with the stock market — to form a better picture of the economy and make decisions on interest rates.
Is the U.S. economy growing?
Q3 2024 Real GDP: 2.8%
What is the U.S. unemployment rate?
October unemployment rate: 4.1%
How fast are wages growing?
Wage growth rate: 4.6%
Is inflation going down?
October CPI Inflation rate: 2.6
The state of the economy is generally strong and inflation is slowing down, but still remains elevated. The Federal Reserve made its first cut of 2025 on Sept. 17.
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