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The economic outlook is mixed. That could be a problem for Biden.

Inflation will continue to cool next year, forecasters say, but growth will slow and unemployment will rise.

Economists predict US inflation will keep cooling and the economy can avoid a recession
A survey shows most business economists think the US economy could avoid a recession next year, even if the job market ends up weakening under pressure brought by high interest rates.

Federal Reserve’s preferred inflation gauge shows price pressures continuing to cool
Thursday’s report from the Commerce Department said prices were unchanged from September to October, down from a 0.4 percent rise the previous month.

US economic growth for last quarter is revised up to a 5.2% annual rate

In the current fourth quarter, though, economists say growth is likely slowing sharply from the cumulative effects of higher borrowing rates on consumer and business spending.

Fed officials hint rate increases are over, and investors celebrate
Economic growth is cooling, reducing the urgency for additional moves.

Fed officials thought rates could rise more if inflation stayed stubborn
Fed watchers are now trying to figure out whether officials are conclusively done raising interest rates and, if so, when they are likely to begin cutting them.

Why Americans feel gloomy about the economy despite falling inflation and low unemployment
Many factors lie behind the disconnect, but economists increasingly point to one in particular: The lingering financial and psychological effects of the worst bout of inflation in four decades.

Boston Fed president Susan Collins remains upbeat on the economy
Susan M. Collins said Friday that she hopeful inflation can be tamed without triggering a painful recession.

Latest Headlines in Economy

Sharp drop in airfares cheers inflation-weary travelers

The glut of deals suggests that the airline industry’s supercharged pandemic recovery may finally be slowing as the supply of tickets catches up and, on some routes, overtakes demand, which appears relatively robust.

US consumer inflation eased in October, driven lower by cheaper gas, cars, and airfares

The latest price figures arrive as Fed officials are considering whether their benchmark interest rate is high enough to quell inflation or if they need to impose another rate hike in coming months.

Larry Edelman | Trendlines

As Sullivan Tire is transferred to worker control, here’s what to know about employee ownership

Employee stock ownership plans are a way for business owners to share their success with workers and preserve what they built after retiring.

Powell urges Fed economists to be flexible on forecast methods

The Federal Reserve chair said the central bank must be willing to think beyond the complex mathematical simulations it traditionally uses to forecast the economy.

Larry Edelman | Trendlines

It’s still a good time to jump on those 5 percent savings rates

The Federal Reserve may well be done hiking rates, forecasters say, but it won’t begin lowering them for a while.

Federal Reserve leaves its key rate unchanged but keeps open possibility of a future hike

The Fed said in a statement after its latest meeting that it would keep its benchmark rate at about 5.4 percent, its highest level in 22 years.

larry edelman | trendlines

The Federal Reserve isn’t sure where the economy going

Like the rest of us, the Fed is waiting to see what happens next, looking for clear evidence that inflation is in a sustained retreat before declaring inflation a thing of the past.

US economy accelerated to a strong 4.9% rate last quarter as consumers shrugged off Fed rate hikes

Thursday’s report on the nation’s gross domestic product showed that consumers drove the acceleration, ramping up their spending on everything from cars to restaurant meals.