While the U.S. economy continues to expand and is currently a major driver of global growth, inflation has recently ticked up after falling considerably from a peak of 9.1% nearly two years ago. Many now perceive that in the near term, the U.S. Federal Reserve will not reduce borrowing costs, and some anticipate a resumption of raising rates by early 2025. Unless a severe economic downturn occurs, interest rates are likely to remain relatively elevated for an extended period. A tight labor market and strong household net worth has led to remarkable resilience in U.S. consumer spending as Americans continue to enjoy experiences and travel. With this said, modest employment growth is anticipated as companies in certain industries are reducing headcounts while others are scaling back hiring.