2024 Economic Outlook: Job Losses, Inflation, and a Soft Landing

A Congressional Budget Office (CBO) report warns that millions of Americans will lose their jobs in 2024, projecting a rise in the unemployment rate from 3.9 percent to 4.4 percent by the end of the year. The report attributes the expected job losses to weaker consumer spending, lower nonresidential investment, and reduced exports, outweighing the positive effects of higher government spending and lower taxes. The Federal Reserve has a similar outlook, predicting slower GDP growth and an increase in the unemployment rate. The CBO suggests that the Fed may respond to the weakening economy by cutting interest rates.