US Economy Cools Like the Fed Wants, Still Risks a Stall in 2023
- Growth exceeded forecast, though underlying demand softened
- Consumer spending rose at 2.1% rate, trailing estimates
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The US economy beat expectations in the last quarter of 2022, posting the kind of mild slowdown that the Federal Reserve wants to see as it attempts to tame inflation without choking off growth.
Economists who dug into the details, though, saw enough warning signs – especially in weakening demand among American consumers – to suggest that a recession remains a big risk this year.