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  • 2 months ago
The U.S. economy grew more strongly in 2025 while inflation cooled from prior peaks, but elevated prices and rising living costs continue to strain households as the Federal Reserve balances inflation risks against slowing hiring, according to CBS News.
Transcript
00:00It's Benzinga, bringing Wall Street to Main Street.
00:03The U.S. economy posted stronger growth in 2025, while inflation stayed relatively muted,
00:08even as Trump's tariffs raised import costs, according to CBS News.
00:13Many Americans said high living costs continued to strain household budgets,
00:18and economists said relief would likely be gradual.
00:22Inflation has eased from its 2022 peak, but prices remain high and continue to strain
00:28household budgets, while utility and heating costs rose.
00:32Inflation remains above the Federal Reserve's 2% target,
00:36keeping pressure on household budgets as everyday prices continue to rise.
00:40The Federal Reserve faces competing pressures as elevated inflation could argue for higher rates,
00:45while rising unemployment and slower hiring could push policymakers toward further rate cuts.
00:51Housing affordability could improve slowly as mortgage rates stay near 6%,
00:54and price growth moderates.
00:56Economists expect hiring and wages to pick up,
00:59while markets weigh risks tied to AI stock valuations.
01:02For all things money, visit Benzinga.com.
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