People in the U.S. are starting to feel pretty good about the economy. Before, lots of folks were kinda bummed about it.
Why? Well, there was this thing called inflation, and the aftermath of the big sickness made everyone worried about the economy. Some even thought a recession was around the corner. But now, things are looking up!
The prices aren’t rising as fast, and the folks in charge of money stuff say they’re not going to raise interest rates anymore. Plus, lots of people have jobs and are spending money. So, the scary thoughts about a 2024 recession are going away.
In December, more people felt they would have more money in a year, according to a survey by the Federal Reserve Bank of New York. People were super confident last month, too, says the Conference Board. And another study from the University of Michigan also showed a big jump in how people feel.
Even though things are looking up, it’s still a bit like we’re just getting out of a tough time, not like we had super good growth last year. Emma, a college student, is happy because gas prices dropped, and she gets to keep more money.
When people feel better about money, they usually spend more, and that’s good for the country. It might even affect elections, with people picking leaders based on how they think the economy is doing.
Right now, some people are saying the current president isn’t doing a great job. The other side, though, says their plans are working, making more jobs and fixing money stuff. The upcoming election might depend on how people feel about the economy.
Things are looking up for a few reasons. Jobs are still available, and inflation is slowing down. Also, mortgage rates are lower, and the stock market is doing well.
Some folks are even more excited about buying homes and cars. People making a good amount of money are feeling even better, maybe because the stock market is doing awesome.
News stories about the economy are also getting more positive, which could be making people feel better about things. But, there are still some things that could mess it up, like the prices going up too much, or if the job market gets tough.
So, while things are getting better, we still need to be careful. It’s like having a really good dessert, but you don’t want to eat too much and feel sick later on.
