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Economy Statement By Eric Van Nostrand, US Acting Assistant Secretary For Economic Policy, For The Treasury Borrowing Advisory Committee May 1, 2023

<h3>INTRODUCTION</h3> <p>The American economy showed continued resilience in the first quarter of 2023.&nbsp; Real GDP rose 1.1 percent at an annual rate while employers added 345,000 payroll jobs per month. &nbsp;Amid the strong job growth and persistently low unemployment rates, there were also signs that labor supply grew to match demand.&nbsp; The overall labor force participation rate (LFPR) improved to within a percentage point of its rate just before the pandemic and the prime-age (ages 25-54) LFPR matched its pre-pandemic rate.&nbsp; Moreover, inflation continued to slow over the year amidst improved supply chain resiliency, lower energy prices, and tighter monetary policy.&nbsp; However, inflation rates remain above the Federal Reserve&rsquo;s 2 percent inflation target, elevated in part by price growth for rental residences and owner-occupied housing.</p> ....

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Economy Statement By Benjamin Harris, US Assistant Secretary For Economy Policy, For The Treasury Borrowing Advisory Committee

<h3>INTRODUCTION</h3> <p>Despite global and pandemic-related economic headwinds, the U.S. economy proved its resilience in the fourth quarter of 2022 with real gross domestic product (GDP) growing at a healthy 2.9 percent annualized rate.&nbsp; Labor markets remained tight: employers added an average of 247,000 payroll jobs each month&mdash;a pace well-above that needed to maintain a stable unemployment rate&mdash;and the unemployment rate returned to the half-century low of 3.5 percent.&nbsp; Moreover, inflation continued to slow: since peaking in June 2022, 12-month headline inflation (as measured by the consumer price index) has fallen by 2.6 percentage points, owing to sharp drops in energy prices and moderating non-energy goods inflation over the second half of the year.&nbsp; Core inflation (excluding food and energy) slowed by less than headline, largely due to elevated shelter inflation&mdash;though timely measures of house pri ....

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