2023-07-31 09:14:38
Published on July 31, 2023 at 11:14.
At present, the US economy appears to be in good shape: growth is approaching 2%, core and underlying inflation is declining, the unemployment rate is low and oil and gasoline prices are lower than the same period last year. In addition, corporate profits are beginning to rise and artificial intelligence might lead to a never-before-seen increase in productivity. However, some challenges loom on the horizon.
Indeed, the Core PCE, the inflation indicator favored by the Federal Reserve (Fed), presents a major challenge. Despite a target set at 2%, this index is still at a worrying level of 4.6%. In order to rectify the situation, the Fed plans to raise interest rates one or two more times this year, which might hamper economic growth and investment.
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