Powell: U.S. Economy Booms, Real Estate Stabilizes

Federal Reserve Chairman Jerome Powell recently provided an update on the U.S. economy, highlighting its solid pace of expansion and a stable labor market. The economic activity, bolstered by resilient consumer spending, resulted in a 2.5% GDP growth for 2024. Although investment in equipment and intellectual property softened in the fourth quarter, the overall performance for the year remained robust.

The real estate sector, which experienced a soft patch mid-last year, has since stabilized. The labor market has remained firm and plateaued, with an average monthly job gain of 189,000 over the past four months. The unemployment rate, following an earlier uptrend, has held steady at 4% since mid-last year, indicating a relatively low level.

Nominal wage growth has moderated over the past year, and the gap between job openings and workers has narrowed. Overall, a range of broad-based indicators suggest that labor market conditions are broadly balanced and not a significant source of inflationary pressure.