US Economy Back On Growth Trend

US nonfarm employment returned to its pre-pandemic level in August 2022, and the economy as a whole has

returned to its pre-pandemic growth trajectory.

According to the first preliminary estimate released by the U.S. Bureau of Economic Analysis (BEA) last week, real GDP grew 2.1% in 2022, following a 5.9% increase in 2021.

Covid-19 put a dent in U.S. economic growth but, thanks at least in part to generous stimulus spending, it didn’t throw it off  its trajectory.

But  inflation is still high and the Fed’s efforts to bring it down by further tightening measures may cause a slowdown or even a recession this year.

With the labor market, private investment and consumer spending looking very robust though, there are also voices hoping that inflation can be reigned in without sliding into recession.