12-15-2023, 3:48 PM

The Congressional Budget Office predicts lower inflation and increased unemployment in 2025

Updated economic predictions for the next two years by the Congressional Budget Office showed Friday that inflation will nearly reach the Federal Reserve's 2% target rate in 2024 as GDP slows and unemployment rises until 2025.

The office's 2023–2025 Current View of the Economy predicts a 4.4% unemployment rate in the fourth quarter of 2024 and a steady rate through 2025.

Latest Bureau of Labor Statistics data shows 3.7% unemployment.

According to CBO predictions, GDP will decrease from 2.5% in 2023 to 1.5% in 2024 before rising to 2.2% in 2025.

Joblessness has been below 4% for nearly two years, the longest streak since the late 1960s.

Most analysts predict growth to stagnate and inflation to fall.

This week, the Federal Reserve maintained its benchmark interest rate for a third time and indicated that they may decrease rates next summer.

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