U.S. Economy Transitions to Slower Growth as Inflation Weighs on Consumers

The U.S. economy is enduring a rocky transition from an exceptionally strong recovery to a steep slowdown as rising inflation and interest rates weigh on consumers and businesses.

Economic growth surged last year, as consumers unleashed spending and businesses recovered from the short, deep pandemic recession of early 2020. But that robust growth is grinding to an abrupt halt as households, companies and policy makers face deep challenges, with four-decade-high inflation chief among them.