Economy grows at breakneck speed

The U.S. gross domestic product expanded 5.7 percent overall in 2021 as it rebounded from the pandemic-induced recession, jumping 6.9 percent in October through December alone. It was the fastest pace of growth since 1984. Experts say household spending and private investments drove the yearly increase. Economists predict the growth will slow in the coming months as the Federal Reserve removes its pandemic-recovery policies and raises interest rates to fight inflation, which is also on the rise.

What about jobs? U.S. jobless claims hit a pandemic low of 3.9 percent in December but rose slightly in the past four weeks. As of Jan. 15, 1.7 million Americans were receiving jobless aid, up 51,000 from the week before. But experts say this probably won’t stop the comeback. Economists expect employers to add more jobs and work hard to keep the employees they have as the economy expands and COVID-19 infections decline. 

Dig deeper: Read Kent Covington’s report in The Sift on the Federal Reserve raising interest rates.