How did the US economy fare in 2021, and what were the major economic events?

The US economy showed signs of recovery in 2021 after the COVID-19 pandemic caused a recession in 2020. The Gross Domestic Product (GDP), which is a measure of economic activity, grew at an annualized rate of 5.7% in the third quarter of 2021, according to the Bureau of Economic Analysis. Inflation was also a major concern in 2021, with consumer prices rising at their fastest pace in over 30 years, due to supply chain disruptions and increased demand for goods and services.

One of the major economic events in 2021 was the passage of the $1.9 trillion American Rescue Plan, which provided stimulus payments to individuals, extended unemployment benefits, and funded vaccination efforts to combat the pandemic. The Federal Reserve also played a significant role in supporting the economy by keeping interest rates low and continuing to purchase assets to provide liquidity to financial markets.

Employment was another important economic indicator in 2021, as the labor market continued to recover from the pandemic. The unemployment rate fell from 6.0% in March 2021 to 4.2% in November 2021, according to the Bureau of Labor Statistics. However, there were also concerns about labor shortages in certain industries, which led to wage increases and increased competition for workers.