<h3>INTRODUCTION</h3>
<p>The American economy showed continued resilience in the first quarter of 2023. Real GDP rose 1.1 percent at an annual rate while employers added 345,000 payroll jobs per month. Amid the strong job growth and persistently low unemployment rates, there were also signs that labor supply grew to match demand. The overall labor force participation rate (LFPR) improved to within a percentage point of its rate just before the pandemic and the prime-age (ages 25-54) LFPR matched its pre-pandemic rate. Moreover, inflation continued to slow over the year amidst improved supply chain resiliency, lower energy prices, and tighter monetary policy. However, inflation rates remain above the Federal Reserve’s 2 percent inflation target, elevated in part by price growth for rental residences and owner-occupied housing.</p>