Axios - Last year at this time, most economists, many journalists and a lot of regular Americans felt certain the U.S. was headed into recession. They were wrong.The U.S. economy failed to fail in 2023 — one of the year's biggest and happiest surprises.. . Many economists and finance experts believed the Fed's battle to tame high inflation with rapid interest rate hikes would trigger high unemployment and a recession, as it had in the '70s. Instead, the economy grew. The unemployment rate stayed low, as the job market cooled but remained strong.
The Fed's rate hikes did trigger pain in many parts of the economy. The real estate market is now, to put it technically, a mess. A lot of tech workers lost their jobs. Last spring, there was a mini-banking crisis, as high rates exposed weaknesses at some financial institutions. But the hurt in certain sectors didn't spread to the "real economy" — the realm in which regular Americans work and spending.
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