Phoenix outpaced the nation both in wage growth and employment growth last year, as cooling inflation and a more balanced job market nationwide can be expected to carry into next year.
Economists speaking at the Greater Phoenix Chamber’s Economic Outlook discussed what to expect on the national level, and how Arizona is faring with job creation and addressing its housing crisis. Overall, the outlook was generally optimistic, previewing a healthy economy for the upcoming year, with some concerns about curbing inflation.
The Federal Reserve is expected to lower the federal funds rate at its meeting next week, which could further reduce interest rates.
Nationally, inflation is still higher than the Federal Reserve’s target of 2%, but it has slowed after peaking in 2022, Steve Wyett, chief investment strategist for BOK Financial, said. Slowing inflation does not mean prices are going down, it means they are increasing at a slower rate.
“Getting to that 2% target is going to be a little difficult going forward,” Wyett said.