-
What were the key factors contributing to the slowdown in US economic growth?
Several factors played a role in the slowdown of US economic growth in the first quarter of 2024. These include a decrease in consumer spending, global economic uncertainties impacting exports, and supply chain disruptions affecting various industries.
-
How does the slowdown in economic growth impact the job market?
The slowdown in economic growth can have repercussions on the job market. With businesses potentially scaling back on hiring or even laying off workers due to reduced demand, job creation may stagnate, leading to increased unemployment rates.
-
What sectors of the economy were most affected by the slowdown?
Certain sectors of the economy felt the impact of the growth slowdown more acutely. Industries heavily reliant on consumer spending, such as retail and hospitality, faced challenges, while manufacturing and export-oriented sectors were also affected by the global economic uncertainties.
-
How did the rise in inflation impact consumer purchasing power?
The rise in inflation during the first quarter of 2024 eroded consumer purchasing power. As prices increased at a faster rate than incomes, consumers found their budgets stretched thinner, potentially leading to changes in spending habits and overall economic activity.
-
What measures can the Federal Reserve take to address the economic challenges?
In response to the slowdown in economic growth and rising inflation, the Federal Reserve may consider adjusting interest rates to stimulate or cool down the economy. Additionally, the Fed could implement monetary policies aimed at supporting job creation and stabilizing prices.