United States economic outlook: third quarter of 2024

The United States economy expanded at an annualized rate of 3.1% in the third quarter of 2024, above the economy’s long-term growth potential and the 3.0% growth recorded in the second quarter, driven primarily by consumer spending. The resilience of consumer spending has been supported by receding inflation and a robust labour market. Employment has increased for 47 consecutive months, but the labour market is softening. Progress in bringing down inflation has stalled over the past three months, with inflation rising from 2.4% in September 2024 to 2.7% in November. The Federal Reserve cut interest rates for a third and final time this year at its December meeting, alleviating pressure on financial conditions in Latin America and the Caribbean. The United States economic outlook reports are published three times a year and follow the main macroeconomic developments of the United States economy and how they may affect financial conditions in Latin America and the Caribbean. This issue contains a special chapter on the performance of the United States economy during the past three administrations and the role that the state of the economy may have played in the 2024 presidential election.