What’s next for the economy?

It is difficult to predict with certainty what will happen in the economy in the future. However, there are certain trends and indicators that can give us some insight into the current state of the economy and where it may be headed. Here are 10 charts that can help provide some context on the current state of the economy and where things may be headed:

Unemployment rate: The unemployment rate is a measure of the percentage of the labor force that is not currently employed but is actively looking for work. A low unemployment rate is generally considered to be a sign of a strong economy, while a high unemployment rate can indicate economic weakness. As of December 2021, the unemployment rate in the United States was 6.7%, which is down from the peak of 14.7% in April 2020 but still higher than the pre-pandemic rate of 3.5% in February 2020.

Gross domestic product (GDP): GDP is a measure of the total value of all goods and services produced in an economy over a given period of time. It is often used as a measure of the overall health of an economy. In the United States, GDP grew by 4.3% in 2021, which is an improvement from the 3.5% decline in 2020 but still below the long-term average growth rate of around 2%.

Inflation: Inflation is the rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling. Central banks attempt to limit inflation and avoid deflation in order to keep the economy running smoothly. The inflation rate in the United States was 2.3% in 2021, which is within the Federal Reserve's target range of 2% to 2.5%.

Consumer confidence: Consumer confidence is a measure of how optimistic or pessimistic consumers are about the economy. It is often seen as an indicator of future economic activity, as consumers who are confident about the economy are more likely to make purchases. The consumer confidence index in the United States was 101.4 in December 2021, which is up from the low of 86.3 in April 2020 but still below the long-term average of around 100.

Stock market performance: The stock market is often seen as a barometer of the overall health of the economy. A rising stock market is generally seen as a sign of investor confidence in the economy, while a falling stock market can indicate economic uncertainty or weakness. The S&P 500 index, which is a broad measure of the stock market, was up by around 20% in 2021.

Housing market: The housing market can be a good indicator of the overall health of the economy. A strong housing market is often seen as a sign of consumer confidence and economic growth, while a weak housing market can indicate economic uncertainty or weakness. In the United States, the housing market has been strong in recent years, with home prices and sales both rising.

Interest rates: Interest rates are the percentage of a loan that is charged by the lender to the borrower. Low interest rates can stimulate economic activity by making it cheaper for individuals and businesses to borrow money, while high interest rates can slow down economic activity by making borrowing more expensive. The federal funds rate, which is the interest rate that banks charge each other for overnight loans, was 0.25% in December 2021, which is near its all-time low.

Government debt: Government debt is the amount of money that a government owes to its creditors. High levels of government debt can be a burden on an economy and may affect a government's ability to finance its operations or invest in infrastructure and other projects. The United States government debt as a percentage of GDP was around 105% in 2021