A record number of immigrants now make up 18.6% of the U.S. workforce, filling crucial roles in industries like technology, healthcare and agriculture. Economists say these workers are essential for growth, as the birth rate declines and more Americans retire. The government predicts immigrant workers will boost the economy by $7 trillion over the next decade.
The UK's economy is expected to perform the worst among developed nations in 2024 due to sluggish growth. High interest rates and inflation have weighed on the UK economy, with GDP growth projected at just 0.4%, trailing other countries. Despite global economic recovery, the UK's economy lags behind due to government policies and external factors, leading to a weaker outlook compared to other advanced nations.
The Federal Reserve (Fed) decided not to lower interest rates at its Wednesday meeting, believing inflation remains too high. Inflation is currently 2.7%, above the Fed's target of 2%, and prices are not declining as quickly as hoped. Despite concerns about the economy slowing down, the Fed believes reducing inflation is a priority. The Fed also slightly eased its bond-buying limitations in a modest attempt to stimulate the economy.
The Federal Reserve won't make any changes to interest rates this week, keeping them at the current high level. The only news expected from the Fed's meeting is an announcement that it will reduce the amount of money it's withdrawing from its holdings. Despite strong inflation, the Fed is holding back on rate cuts until it's sure inflation is under control. The market now expects only one small rate cut by the end of next year.
The gold standard, dismissed in the past, is gaining attention again. Central banks are buying gold. Some cryptocurrencies are pegged to gold. Dissatisfaction with fiat currencies grows as global debt balloons. Zimbabwe has even pegged its new currency to gold. These events suggest a return to a gold-based monetary system could be on the horizon.
Despite aggressive interest rate hikes, inflation remains stubbornly high, exceeding the Federal Reserve's target of 2%. This persistence is due to factors such as excess consumer spending, persistent supply-chain bottlenecks, and a booming job market. As a result, the Fed may be forced to maintain elevated rates or even consider additional hikes, despite the risk of triggering a recession. The economic situation shows some signs of strain, but so far, a broader downturn has been averted.
