The data shows that the inflation rate in the United States is decreasing, but the job market is still strong, which makes people feel a bit complacent, hoping that the Federal Reserve will lead the United States to achieve a soft landing.
Unfortunately, for Federal Reserve Chairman Jerome Powell and other Fed officials, there are currently three different events that are intertwined and could impact the US economy and derail it. These events include a historic strike by car workers, an expected government shutdown, and a planned restart of student loan repayments.
These three major events may weaken economic growth in the fourth quarter, depending on the severity of their impact. Economists at Goldman Sachs Group estimate that the annual economic growth rate may slow from 3.1% in the third quarter to 1.3% in the fourth quarter. According to Gregory Daco, chief economist of consulting firm EY Parthenon, the combined effect of these events will reduce economic growth rate by 0.8 percentage points; He said that the already stressed service industry expenditure and commercial investment will also further decline, and given this, the economic growth rate may slide towards 0%
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