Our most recent book is titled Divided We Stand: The 2020 Elections and American Politics. Among other things, it discusses the politics of economic policy.
Inflation came down in 2023 much faster than anyone expected, sealing expectations that the Federal Reserve won’t raise interest rates this week and shrinking the chances that the economy is headed for a recession.
A year after prices soared to four-decade highs, inflation for all sorts of goods and services has fallen considerably. The shift still leaves actual prices for eggs, bread, rent and other basics higher than just a few years ago. But costs aren’t rising at such a dizzying, rapid clip — bringing stability and predictability to household budgets and the economy at large.
Fresh data from the Bureau of Labor Statistics on Tuesday showed prices rose 3.1 percent in November over the year before, and about 0.1 percent compared to October. That’s still higher than normal, but a vast improvement since the consumer price index peaked at 9.1 percent in June 2022.