We are now approaching the end of 2023, and if we were to describe the state of the U.S. economy this year, it might best be described as one of “resilience” and “resolve.” Despite numerous challenges, ranging from the seemingly unending war in Ukraine, to the more recent war between Israel and Hamas, China’s ongoing property crisis, still-high inflation at home, and the resumption of student loan repayments – the U.S. economy has proved to be a lot sturdier than most expected at the beginning of the year.
The resilience holds across multiple sectors – including the labor market and consumer spending, as well as the banking sector, which looked quite shaky in the first half amid the regional bank crisis. Another defining moment of 2023 has been the Fed’s resolve to keep rates elevated.
