It was a year of chaos, emotions, madness, and uncertainty. In other words, the economics of 2024 were perhaps analogous to Nicholas Cage’s acting range. Indeed, there was no shortage of financial headlines over the last 12 months. Economist Paul Krugman retiring his New York Times blog might have been the biggest story of 2024, but this is no country for Keynesianism! Let's hop into the DeLorean and take a trip down memory lane.
Federal Reserve Cuts Interest Rates in 2024
Federal Reserve Chair Jerome Powell uttered the magic words in his keynote address at the annual Jackson Hole, WY, economic symposium: "The time has come for policy to adjust." And, as good as his word, Powell followed through on the central bank's monetary policy adjustment. For the first time since the onset of the coronavirus pandemic, the Federal Reserve cut interest rates at the September Federal Open Market Committee (FOMC) policy meeting, employing a super-sized half-point cut. By New Year's Eve 2024, the Fed reduced the benchmark federal funds rate by a full percent. Next year might not be so dovish!
Related: Federal Reserve Cuts Rates for First Time Since 2020
‘I Will Cripple Ya’
The International Longshoremen’s Association (ILA), North America’s largest union representing 85,000 docks and maritime workers, hit the picket lines in October. After warnings from ILA chief Harold Daggett that he would "cripple ya," thousands of port workers went on strike for the first time since 1977. However, unlike the 45-day protest that occurred 47 years ago, the work stoppage only lasted for a cup of coffee. It is a good thing, too, as market experts presented a doom-and-gloom scenario.
It was not the only instance of labor strife in 2024. Thousands of Boeing machinists also hit the picket lines. This time, factory workers at the struggling aerospace giant were on strike for seven weeks. Meanwhile, Las Vegas culinary workers, Starbucks baristas, and Amazon workers also are ending the year holding placards and demanding better pay.
Related: Thousands Hit Picket Lines as Longshoremen Port Strike Starts
Bitcoin Breaks the $100,000 Barrier
The HODLers, the diamond hands, and the crypto bros with nerves of steel achieved an impressive milestone. On Dec. 5, bitcoin broke the $100,000 barrier, fueled primarily by President-elect Donald Trump’s electoral victory. While the profits were welcomed, it was quite the occasion, considering the various booms and busts, the government crackdowns, and the skeptics who viewed it as a gimmick. Ultimately, the pizza shop that received 10,000 bitcoins for a pizza order a decade ago is laughing all the way to the bank.
Related: Eric Trump Touts the United Cryptocurrencies of America
AI Craze
Did anyone doubt artificial intelligence’s power and innovation? When ChatGPT broke onto the scene a couple of years ago, the consensus was that this was just the beginning. Could anyone accurately predict how impressive AI, particularly generative AI, would be? Not only has AI tech evolved from Will Smith eating spaghetti to Hollywood-esque productions but also investors have cashed in on the craze. Nvidia, the AI chipmaker riding the AI tsunami, became a $4 trillion company this year.
Related: The Robot Rebellion: AI Convinces Others to Quit Their Jobs
SpaceX Gives Hugs
Billionaire Elon Musk and his team of SpaceX engineers might have permanently altered America’s interstellar pursuit as they successfully launched a test of its new technology in October. The company’s “chopsticks,” a pair of giant metal pincers installed on an enormous steel tower the size of a skyscraper, caught SpaceX’s Super Heavy Starship rocket on descent. While Musk’s detractors minimized the historic event, anyone with an ounce of common sense could see how dramatically this could impact the future of space travel.
Related: Elon Musk Livestreams with Donald Trump, World Survives
Jobs Data: Swing and a Miss
How poor are the Bureau of Labor Statistics’ data-gathering abilities? Well, this past summer, the federal agency announced that it created fewer jobs than previously reported. It was not a few hundred or tens of thousands. After it published the preliminary annual benchmark revisions to the non-farm payroll numbers from April 2023 to March 2024, the economy created 818,000 fewer jobs than reported. This was the second-largest number since the Great Recession. Considering the abysmal state of the labor bureau's data collection amid a poor return rate, the following report will likely show a miss again.
Related: It’s Official: US Economy Created Fewer Jobs
The Tariff Man Strikes Again
Donald Trump (Photo by Rebecca Noble/Getty Images)
Trump’s victory was perhaps the biggest headline of 2024. That said, before returning to the White House, he has already made considerable strides. One of these is his threat to slap tariffs on Canada, Mexico, and China to tackle illegal immigration and the drug crisis. Additionally, Trump threatened to impose tariffs on nations that engage in the de-dollarization campaign, further cementing the greenback’s international hegemony. The next four years should be popcorn entertainment in the realm of trade policy.
Related: Trump Focuses Tariff Weapon on Anti-Dollar BRICS
Walking Down the Toffee Path
In the first three months of 2024, the inflation candle showed signs of being rekindled. In the following months, it decelerated and appeared to be inching toward the Federal Reserve’s 2% inflation target. However, in the home stretch of 2024, inflation is proving to be a sticky substance that remains stubbornly high. The Fed calls it a “bumpy” path. Whatever it is called, 2025 could leave Americans wondering about the definition of “transitory.”
Related: Is Inflation Making a Comeback?
National Debt: Three Milestones
Uncle Sam unlocked three milestones in one year. The national debt touched $34 trillion on Jan. 5, increased to $35 trillion on July 26, and surpassed $36 trillion on Nov. 21. By this rate, America’s debt will activate the $37 trillion achievement in the spring. Will the Department of Government Efficiency (DOGE) delay this increase? Unlikely.
Related: US Crosses $36 Trillion National Debt Milestone
China’s Economy, or How No Yuan Saw It Coming
Has anyone been paying attention to the world’s second-largest economy? Are things OK over there? Economic conditions in China are deteriorating, forcing officials to fire off fiscal and monetary stimulus bombs to keep the government’s growth targets intact. For the first time in 14 years, China adopted an "appropriately loose" monetary policy. This comes as exports have slowed, imports have plummeted, and growth is falling short of estimates. Big trouble is brewing in little China; with Trump on the way, Beijing could be on the brink of Japanification.
Related: China’s Four-Day Third Plenum Wraps Up with Reform Promises
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