Congressional Budget Office projects lower inflation and higher unemployment into 2025

By FATIMA HUSSEIN
Associated Press

WASHINGTON (AP) — The Congressional Budget Office says it expects inflation to nearly hit the Federal Reserve’s 2% target rate in 2024, as overall growth is expected to slow and unemployment is expected to rise into 2025, according to updated economic projections for the next two years. The office’s Current View of the Economy from 2023 to 2025 report, released Friday, estimates that the unemployment rate will hit 4.4% in the fourth quarter of 2024 and remain close to that level through 2025. Compared with its February 2023 projections, CBO’s Friday report predicts weaker growth and lower unemployment.