US Economy Surpasses 2024 Growth Expectations Despite Inflation And Rate Challenges

The U.S. economy outperformed expectations in 2024 despite challenges. Inflation remained persistent, prompting the Federal Reserve to maintain higher interest rates, which weighed on the housing and manufacturing sectors. Rising borrowing costs also increased delinquency rates among consumers with credit card debt, mortgages, and loans. Wage growth outpaced inflation, but signs of financial strain emerged as pandemic savings dwindled and lower-income households relied more on credit. High borrowing costs and weak foreign demand led to reduced investment and widespread job cuts in the manufacturing sector throughout the year. President-elect Donald Trump’s economic policies, including higher tariffs and potential supply chain disruptions, may impact growth in 2025.