It has been a(nother) turbulent year. And while we'd like to think the coming year might bring less upheaval, it seems unlikely. The next presidential election takes place in late 2024, which means the prospect for dramatic policy change is highly unlikely, but that real changes in any policy will be introduced in 2025 and 2026. What is introduced and perhaps implemented will be based on the configuration of the executive branch, House of Representatives, and Senate. 

The focus on affordability

Voters are focused on topics of keen interest to them: their financial position, their security, cost of basic living expenses, and education.  

In 2024, we are likely to have an economy that will continue to expand – albeit at a slightly lower rate. The monetary policy from the Federal Reserve Bank's actions and fiscal policy from the federal government will continue to work against each other and create some concern for businesses and citizens.  For example, it is forecasted that the interest payments on the outstanding deficit will be nearly $1 trillion dollars – a number that is hard for most of us to even fathom.  

To put this into context, the U.S. gross domestic product is estimated to be $26 trillion, while the total deficit is estimated to reach $31 trillion, having grown by nearly $2 trillion in 2023 alone!  In an overly simplistic comparison, if an individual received $1 in revenue but spent $2, what is their ability to repay their debt, or to get ahead?  If, over the years, they continue to receive $1 and continue to spend more than that, where are the dollars going to come from to pay the interest on their debt? If they do invest to pay down their debt, that leaves less money to invest in other things.  Interest payments on debt produces handcuffs and reduces financial flexibility.