The American Economy: Solid Foundations

As 2024 draws to a close, the U.S. economy is ending the year on a stable and high note, showcasing a solid foundation and a confident consumer sector. These factors provide the Federal Reserve with a robust rationale to maintain interest rates at their current levels. Strong consumer spending continues to support economic growth, which stands out amid global economic weaknesses.

Impressive Economic Growth

According to the latest economic forecasts, the United States' Gross Domestic Product (GDP), which measures the total value of goods and services produced, is expected to grow by 2.7% on an annualized basis in the fourth quarter. This forecast follows several consecutive quarters of growth around 3%. These figures are a testament to the economy's resilience despite international instability and domestic challenges.

Factors Supporting the Economy

Despite global challenges, the U.S. continues to exhibit economic resilience, bolstered by several key factors:

• Robust Consumer Spending: Consumers remain the main driving force, providing a steady revenue stream for businesses;

• Business Innovation: American companies continue to adopt cutting-edge technologies, allowing them to stay competitive in both domestic and international markets;

• Low Unemployment: Historically low unemployment levels sustain demand, consumer confidence, and internal stability.

End of 2025 Forecasts

1. Sustained consumer spending will remain a key factor in supporting economic growth;

2. A controlled level of inflation will allow the Federal Reserve to maintain its monetary policy course;

3. The active growth of innovative sectors, such as information technology, will continue to attract capital from both international and domestic investors.

Federal Reserve Strategies and Impact on the Financial System

The stable position of the U.S. economy allows the Federal Reserve to adhere to a cautious strategy regarding interest rate changes. The main reasons for maintaining the current course are:

• Inflation remains at an acceptable level, eliminating the need for additional financial regulation measures;

• Low Unemployment serves as an indicator of high labor market resilience and domestic demand;

• Detachment from Economic Issues in Other Countries, offering the U.S. additional protection during times of international instability.

The Federal Reserve is closely monitoring macroeconomic changes. Under current conditions, its course is designed to reinforce the country's economic foundation over the long term.