Fed minutes: solid U.S. growth last year, sluggish Q4 growth in foreign economies

The Fed minutes noted that real GDP growth in the US continued to be solid in 2024. Labor market conditions have moderated since the beginning of 2024, but the unemployment rate remains low. Consumer price inflation was below year-earlier levels but remained slightly higher. Staff believe that the effects of strikes and hurricanes dampened job growth in October and that job growth received a similar boost in November when those effects subsided. Foreign economic growth accelerated in the third quarter, particularly in the euro area and Mexico. However, recent economic indicators suggest that growth momentum in foreign economies weakened markedly in the fourth quarter, with sluggish manufacturing activity and subdued private consumer spending. Inflation in foreign economies continues to ease. In most of the advanced economies, headline inflation slowed to near- or below-target levels, largely reflecting the pass-through effect of lower energy prices earlier in the year. However, services inflation remained high in some of these economies.