22 August 2023
After the 2007-2009 recession, the Federal Reserve, in 2016, lowered their expectations for U.S. economic growth to 1.8%, citing concerns like aging population and poor productivity. Despite periods of growth exceeding this forecast, the U.S. economy faces challenges. The recent pandemic and the consequent multi-trillion-dollar government intervention have further complicated the economic landscape. As policymakers convene in Jackson Hole this week, they’ll discuss an economy undergoing significant shifts, including changing supply chains, persistent inflation, and potential worker shortages. Notably, BlackRock economists predict even more subdued U.S. growth prospects, potentially as low as 1%, due to factors like retiring baby boomers and volatile inflation.