Economic Indicators - The U.S. GDP growth rate is projected to be 4.0% for Q1 2024, with a gradual decline to 2.0% by Q4 2025[7] - The Michigan Consumer Sentiment Index is expected to show fluctuations, with a notable drop to -6.0% in Q1 2024[7] Federal Reserve Projections - The Federal Open Market Committee (FOMC) is expected to maintain interest rates between 5.30% and 5.80% through mid-2025[5] - Market expectations for a rate cut in December 2025 are at 67.79% probability, decreasing to 32.21% for a higher rate[10] Inflation Metrics - The Consumer Price Index (CPI) is projected to stabilize around 3.0% by mid-2024, with a potential increase to 4.0% by Q1 2025[14] - The Personal Consumption Expenditures (PCE) inflation rate is anticipated to be 2.5% in 2024, reflecting a slight increase from previous years[14] Housing Market Trends - The median home price in the U.S. is expected to rise steadily, reaching approximately $400,000 by late 2025[8] - Existing home sales are projected to increase by 5% annually, indicating a recovering housing market[8] Labor Market Insights - Initial jobless claims are forecasted to remain below 200,000, indicating a strong labor market[16] - The labor force participation rate is expected to stabilize around 62% by 2025, reflecting a balanced labor market[16]