New York Fed brings down economic growth forecast

• People are becoming more pessimistic about the labor market, viewing it as 'low-hire, low-fire'.
• The economy showed 'remarkable resilience' last year, growing at 2%, and was expected to grow faster this year.
• Due to the conflict in the Middle East and higher fuel costs, growth forecasts for this year are being lowered to 2-2.5%.
• The unemployment rate is expected to remain around 4.3%, with the economy continuing to grow roughly at trend, driven by consumer spending and AI investments.

New York Fed President John Williams notes increasing pessimism in the labor market, describing it as 'low-hire, low-fire'. He highlights the economy's past resilience but is now lowering his growth forecasts for this year to 2-2.5% due to the Middle East conflict and rising fuel costs, while expecting unemployment to remain around 4.3%.