US President Joe Biden visits Emmaus Run Inn in Emmaus, Pennsylvania, on January 12, 2024. Biden is visiting several small businesses to tout his Bidenomics economic plan.
Mandel Ngan | AFP | Getty Images
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What you need to know today
The bottom line
What recession?
The U.S. economy grew at an accelerated pace in the final three months of 2023, capping the year on a solid note.
And the recession that so many forecasters had predicted didn’t happen.
The latest GDP data showed the economy grew at a rate of 3.3% in the fourth quarter, much higher than Wall Street’s estimates.
The numbers further showed the U.S. economy’s incredible resilience following intense efforts from the Fed to aggressively hike interest rates to fight inflation.
The Biden administration wasted no time in trying to claim credit. U.S. Treasury Secretary Janet Yellen said it was government policies that helped boost the economy.
“Though some forecasters thought a recession last year was inevitable, President Biden and I did not,” Yellen said in a speech.” Instead of contracting, the economy has continued to grow, driven by American workers and President Biden’s economic strategy.”
“Put simply, it’s been the fairest recovery on record,” Yellen added.
Thursday’s report also included good news on the inflation front. The core personal consumption expenditures price index posted a quarterly gain of 2%, excluding food and energy — a key gauge the Fed uses when assessing inflation. Headline inflation increased just 1.7%.
With all the data pointing in the right direction, it looks like the economy could be inching close to the much talked about soft landing, if it hasn’t already.
— CNBC’s Jeff Cox contributed to this report.