White House Estimates 2025 Unemployment Rate At 4.0% Vs February Rate Of 3.9%; Estimates 3.8% For 2028-2034 Period; White House Says GDP, Unemployment Forecasts Include 'Pro-Growth' Effects Of Child-Care And Other Biden Proposals To Boost Labor Force Participation
Portfolio Pulse from Benzinga Newsdesk
The White House projects the unemployment rate to be 4.0% in 2025 compared to the current rate of 3.9%, with a further reduction to 3.8% from 2028 to 2034. These forecasts account for the 'pro-growth' impact of proposed child-care and other initiatives under the Biden administration aimed at increasing labor force participation.

March 11, 2024 | 4:19 pm
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POSITIVE IMPACT
The White House's optimistic unemployment and GDP forecasts, influenced by Biden's 'pro-growth' proposals, could signal a positive outlook for the U.S. economy, potentially benefiting SPY as it tracks the performance of the S&P 500.
The SPDR S&P 500 ETF Trust (SPY) is a broad measure of the U.S. stock market and tends to react positively to favorable economic forecasts. The White House's projections, if realized, could lead to increased consumer spending and business investments, driving up corporate earnings and, consequently, stock prices. The emphasis on 'pro-growth' policies, including child-care and other initiatives to boost labor force participation, suggests a supportive environment for economic expansion, which is generally positive for equity markets.
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