US: The economy is undergoing an uncomfortable transition.

The US economy is going through a challenging transition, with a lowered GDP growth forecast of 2.3% for 2024. Some sectors, such as housing and manufacturing, are struggling, but this does not necessarily indicate a broader economic downturn. The rise in the unemployment rate is concentrated among younger workers, reducing the risk of a negative cycle. Inflation is expected to remain low, and the Federal Reserve is predicted to cut interest rates. Overall, the short-term growth outlook is moderate, with factors such as household balance sheets and equipment spending supporting the economy. Consumer spending has slowed due to inflation, but this is expected to moderate in the coming months. The job market remains strong, although job gains have slowed, and the unemployment rate may inch higher. The Federal Reserve is considering cutting interest rates, and fiscal policy is expected to remain stable. [Extracted from the article]