The Strong Growth of the US Economy

The US economy has experienced unexpected growth, driven by consumer spending and a strong job market. This growth has been fueled by high nominal and real wages, contributing to increased consumer spending. Additionally, inflation has decreased, leading to stronger demand. The economy may be less affected by interest rate increases, as many companies have termed out their debt, and homeowners with fixed-rate mortgages are not feeling the effects of higher rates. However, interest-sensitive sectors like housing and durable goods purchases have been impacted by higher rates.