Economic Growth

Currently, spending on consumer services (think hotels, passenger transportation, and hair salons, for example) is growing rapidly and keeping the economy above [blank] . But this strong growth can't [blank] forever. As fears of a pandemic subsides and households return to pre-pandemic spending patterns, the pace of recovery in consumer services will slow, and by 2023, job growth in this sector will no longer be unusually high. In its fight to tame inflation and slow the economy, the Federal Reserve [blank] continue to rapidly raise interest rates, which makes stock prices tend to decline, reducing households' net worth and spending. This has created an economy where significant job growth and low inflation cannot coexist. It is either one or the other because the significant expansion of employment in a super-tight labor market will accelerate wages, and therefore prices. In such an environment, we should expect slow economic and job growth [blank] the rest of the decade.