Unemployment was at 4.0% in January 2025. Since WWII, it’s never gone lower than 2.5% — which it reached for two months, in 1953.

Some are even cutting prices, reflecting motivation to lock in years of gains. Sellers’ rising median age might be a factor.

A Federal Reserve survey of bankers shows clients are finding opportunities to borrow and invest, though demand for mortgages is muted.

Austan Goolsbee says the central bank is keenly monitoring how changing economic policy is influencing inflation and employment.

Economic growth was healthy in 2024, coming in at 2.8% compared to 2.9% in 2023. The continuing expansion is driven by consumers.

At his press conference on Wednesday, Fed chair Jay Powell mentioned the Tealbook, a report that looks at the current state of the economy and various economic forecasts. Those alternate scenarios can help the Fed be better prepared if the economy plays out in an unexpected way.

When the Fed cuts interest rates, people expect mortgage rates to also go down. But in 2024, the opposite happened.

In the U.S., it’s partly due to expectations of a stronger, more inflationary future economy with bigger budget deficits.

The pandemic set the stage for the bankruptcies, although they were delayed by government payouts and PPP loans.

They’re starting 2025 at the highest they’ve been since last summer.