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The nations economy grew at an unexpectedly brisk 3.3% annual pace from October through December as Americans showed a continued willingness to spend freely despite high interest rates and price levels that have frustrated many households.

Thursdaysreport from the Commerce Departmentsaid the gross domestic product the economys total output of goods and services decelerated from its sizzling 4.9% growth rate the previous quarter.

But the latest figures still reflected the surprising durability of the worlds largest economy, marking the sixth straight quarter in which GDP has grown at an annual pace of 2% or more.

Consumers, who account for about 70% of the total economy, drove the fourth-quarter growth.

Their spending expanded at a 2.8% annual rate, for items ranging from clothing, furniture, recreational vehicles and other goods to services like hotels and restaurant meals.

The GDP report also showed that despite the robust pace of growth in the October-December quarter, inflationary measures continued to ease.

Consumer prices rose at a 1.7% annual rate, down from 2.6% in the third quarter.

And excluding volatile food and energy prices, so-called core inflation came in at a 2% annual rate.

Those inflation numbers could reassure the Federal Reserves policymakers, who have already signaled that they expect to cut their benchmark interest rate three times in 2024, reversing their 2022-2023 policy of aggressively raising rates to fight inflation.

Although GDP growth came in hotter than expected in the fourth quarter, underlying inflation continued to slow,’ said Paul Ashworth, chief North America economist at Capital Economics. The upshot is that an early spring rate cut by the Fed is still the most likely outcome.

The state of the economy is sure to weigh on peoples minds ahead of the November elections. Afteran extended period of gloom, Americans are starting to feel somewhat better about inflation and the economy a trend that could sustainconsumer spending, fuel economic growth and potentially affect voters decisions.

Ameasure of consumer sentimentby the University of Michigan, for example, has jumped in the past two months by the most since 1991.

There is growing optimism that the Fed is on track to delivera rare soft landing keeping borrowing rates high enough to cool growth, hiring and inflation yet not so much as to send the economy into a tailspin.

Inflation touched a four-decade high in 2022 buthas since edged steadily lowerwithout the painful layoffs that most economists had thought would be necessary to slow the acceleration of prices.

The economy has repeatedly defied predictions that the Feds aggressive rate hikes would trigger a recession.

Far from collapsing last year, the economy accelerated expanding 2.5%, up from 1.9% in 2022.

Our expectation is for a soft landing, and it looks like things are moving that way, said Beth Ann Bovino, chief economist at US Bank. Still, Bovino expects the economy to slow somewhat this year as higher rates weaken borrowing and spending.

People are going to get squeezed, she said.

The economys outlook had looked far bleaker a year ago.

As recently as April 2023, an economic model published by the Conference Board, a business group, had pegged the likelihood of a US recession over the next 12 months at close to 99%.

Even as inflation in the United States has slowed significantly, overall prices remain nearly 17% above where they were before the pandemic erupted three years ago, which has exasperated many Americans.

That fact will likely raise a pivotal question for the nations voters, many of whom are still feelingthe lingering financial and psychological effects of the worst bout of inflation in four decades.

Which will carrymore weight in the presidential election: The sharp drop in inflation or the fact that most prices are well above where they were three years ago?

The Fed began raising its benchmark rate in March 2022 in response to the resurgence in inflation that accompanied the economys recovery from the pandemic recession.

By the time its hikes ended in July last year, the central bank had raised its influential rate from near zero to roughly 5.4%, the highest level since 2001.

As the Feds rate hikes worked their way through the economy, year-over-year inflation slowed from 9.1% in June 2022, the fastest rate in four decades, to 3.4% as of last month.

That marked a striking improvement but still leaves that inflation measure above the Feds 2% target.

The progress so far has come at surprisingly little economic cost.

Employers have added a healthy 225,000 jobs a month over the past year.

And unemployment hasremained below 4% for 23 straight months, the longest such streak since the 1960s.

The once red-hot job market has cooled somewhat, easing pressure on companies to raise pay to keep or attract employees and then pass on their higher labor costs to their customers through price hikes.

Its happened in perhaps the least painful way: Employers are generally posting fewer job openings rather than laying off workers.

That is partly because many companies are reluctant to risk losing workers after having been caught flat-footed when the economy roared back from the brief but brutal 2020 pandemic recession.

Businesses are getting rid of job openings, but theyre holding onto workers, Bovino said.

Another reason for the economys sturdiness is that consumers emerged from the pandemic in surprisingly good financial shape, partly because tens of millions of households had received government stimulus checks.

As a result, many consumers have managed to keep spending even in the face of rising prices and high interest rates.

Some economists have suggested that the economy will weaken in the coming months as pandemic savings are exhausted, credit card use nears its limits and higher borrowing rates curtail spending.

Still, the government reported last week thatconsumers stepped up their spending at retailersin December, an upbeat end to the holiday shopping season.

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Caps frustrated by Rempe’s hit on van Riemsdyk

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Caps frustrated by Rempe's hit on van Riemsdyk

The Washington Capitals expressed frustration after the latest injurious hit by New York Rangers rookie Matt Rempe, which took out defenseman Trevor van Riemsdyk in Game 3 of their series on Friday night.

The Rangers won the game, 3-1, to take a 3-0 series lead in Washington.

With 7:52 left in the first period, van Riemsdyk skated deep into his defensive zone and moved the puck in the opposite direction. Rempe skated straight into him, crushing the defenseman against the end boards. Rempe was given a minor penalty for interference. Van Riemsdyk didn’t return to the game.

The NHL confirmed on Saturday that there would be no Department of Player Safety hearing for Rempe.

The Rangers rookie has made an impact in 17 regular-season and three playoff games, despite limited ice time. Van Riemsdyk is at least the fourth player Rempe has injured on hits since making his NHL debut on Feb. 18. Nathan Bastian and Jonas Siegenthaler of the New Jersey Devils, as well as Toronto Maple Leafs defenseman Ilya Lyubushkin, all had to leave games after Rempe hits. Rempe earned a four-game suspension for his elbow on Siegenthaler and was given a match penalty for the Bastian hit.

The Capitals’ Nic Dowd called out the Rempe hit on van Riemsdyk. “That was a dirty hit. I think anyone can understand that Riems made a play, time passed and a player took advantage of another player in a vulnerable spot,” said Dowd.

Defenseman John Carlson, who skated over 30 minutes in Game 3 because of injuries on the Capitals’ blueline, was exasperated.

“I’m sick and tired of losing defensemen to ‘clean’ hits, that’s for sure. It’s frustrating how guys can get injured and it’s legal,” he said.

Following an optional skate on Saturday, Capitals coach Spencer Carbery said he felt Rempe’s hit was borderline.

“I think it’s really close on a lot of fronts: Interference, charging, late. It’s such a fine line. The game is so fast. The physicality is such an important part of the NHL. But there is a line and player safety is a big, big issue in the league. Protecting players. And the onus is on the players. It’s tight. It’s really, really tight,” he said.

“[Van Riemsdyk] just turns. I don’t know if there’s a set amount of time, where they put a guy on a stop clock and it’s one one-thousand, two one-thousand and ‘bang,'” Carbery said, clapping his hands. “But it was really close.”

The Rangers seek to close out the series on Sunday in Washington. Rempe has a goal and no assists in three playoff games. He’s averaging 7:08 per game in ice time, up from 5:38 in the regular season.

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Inside Michael Busch’s long road to becoming an instant success with the Cubs

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Inside Michael Busch's long road to becoming an instant success with the Cubs

Michael Busch has been a first-round draft pick, a top-100 prospect and a Pacific Coast League MVP during his ascent toward the majors. In most organizations, that kind of résumé gets you fast-tracked to the big leagues. But as a prospect in the Los Angeles Dodgers‘ system, the path was much more complicated.

First, it was perennial All-Star first baseman Freddie Freeman signing a long-term deal to occupy Busch’s primary position in Los Angeles for years to come. Then, an offseason later, it was Shohei Ohtani joining the Dodgers, likely penciling Ohtani’s name into the designated hitter spot for the next decade.

Busch insists he wasn’t fazed by the splashy additions crowding L.A.’s depth chart before he could get the chance to prove himself at Dodger Stadium. But there was one question the former North Carolina star was consistently asked this offseason: Where would he get his at-bats?

“I got that a lot from my friends,” Busch told ESPN this week. “I was always like, ‘Adding those guys is going to increase our chances to win.’ I looked at it as: ‘How can I help this ballclub now?’ Honestly, that was my mindset.”

Busch put that to practice in recent seasons, agreeing to play all over the diamond in hopes of finding a place that would allow him to showcase his bat as an everyday player. Despite the challenges that come with learning a new position each year, Busch never stopped hitting, belting 32 home runs in 2022 and following up by posting a 1.049 OPS on his way to winning the Pacific Coast League’s top honor last season.

“They gave me an opportunity to play second base and I was excited about it,” Busch said with a smile. “Then last year they gave me an opportunity to play third base and I never played third base in my life. I got excited about that as well.”

Then on Jan. 12, Busch’s road to the majors finally opened up — but not with the team that drafted him in 2019. Busch and reliever Yency Almonte were traded to the Chicago Cubs for Single-A players Zyhir Hope and Jackson Ferris — a pair of prospects who were high on L.A’s draft board before being selected by the Cubs.

“It just became harder and harder with the way we were constructed to get him playing time,” Dodgers GM Brandon Gomes said recently. “We all felt Michael was a big leaguer and ready to take the next step towards facing MLB pitching every day. And we just didn’t have the opportunity to do that.”

A move that went under the radar during the hot stove season alleviated the Dodgers’ 40-man roster crunch while giving the Cubs a potential long-term solution at a position they have struggled to fill since trading away Anthony Rizzo in 2021.

“He fit the profile of a need that we had,” Cubs GM Carter Hawkins said. “We knew that he was a player that was going to be available, and we knew he was really good — but the Dodgers knew he was really good and weren’t going to give him away.”

The timing of the trade allowed Busch to immediately introduce himself in his new home. Upon learning of the deal, he left in the middle of a visit to Chapel Hill to head to Chicago, put on a Cubs jersey and walked out to applause at Cubs Convention — even though he didn’t entirely know what the team’s popular offseason event was.

“I just know how important it is to be on a team and to build that culture,” Busch said. “Showing up to spring training made it a little easier after being at the convention.”

But the real introduction came a few months later, when Busch entered the season with his name atop an MLB depth chart for the first time. The Cubs’ new first baseman immediately impressed his teammates with his ability at the plate, hitting .389 with five RBIs in six games during his first Wrigley Field homestand — and belting his first home run against the team that drafted him in a thrilling win over the Dodgers.

Then came the streak. From April 10 to April 15, Busch homered in five straight games, tying a franchise mark that put his name in the record books alongside Chicago icons Sammy Sosa and Ryne Sandberg.

“Even before he had that out-of-body stretch of home runs, I saw the consistency in his at-bats, against all types of pitchers, leverage counts, two strike counts, whatever,” second baseman Nico Hoerner said. “And then the raw power is more than I realized.”

Busch’s ability to hit with authority from the left side was already an important component of a lineup that struggled against right-handed pitching a season ago, and it has become even more important now that Cody Bellinger is out with two cracked ribs suffered while running into the Wrigley Field wall.

“I think we’re in that position,” manager Craig Counsell said. “To minimize [the absence] a little bit. And to cover it a little bit.”

Bellinger isn’t the only key player missing from the lineup. The Cubs are also without right fielder Seiya Suzuki, who injured an oblique in the midst of a red-hot start to the season, adding to the need for Busch and others to pick up the slack to avoid a drop-off like the one Chicago suffered when Bellinger was out this past May.

“The challenge part of it I love,” Busch said. “I’ve been happy with the adjustments in my career, dating back to high school and college and pro ball. I think I can continue that here.”

Mike Tauchman, who is filling in for Bellinger in center field, has noticed a presence from Busch that you’d expect to see from a seasoned veteran, rather than a rookie with just 50 major league games under his belt.

“He has a pretty natural feel for how to take at-bats,” Tauchman said. “The home runs have been impressive, but that stuff can come and go. But when he’s not hitting home runs, he’s in control of his at-bats.

“The adjustments have come pretty quickly, which signals a pretty mature approach for a young player. There isn’t a ton of overreaction to a bad at-bat, which is hard to do.”

That scouting report might remind fans of the last player to hold down first base in Chicago for an extended period — and Busch isn’t backing down from the challenge of living up to the standard Rizzo set at the position.

“Great player and doing it at a high level for a long time,” Busch said. “You hear about how good he was in the clubhouse. He loved to work, he loved to play. So do I.”

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Rendon (hamstring tear) facing lengthy recovery

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Rendon (hamstring tear) facing lengthy recovery

Los Angeles Angels third baseman Anthony Rendon said Friday that he has a high-grade partial tear of his left hamstring, with the update coming five days after he was placed on the injured list with a “strain.”

It is expected to be a lengthy recovery for Rendon, who has not played more than 58 games in any of his previous four seasons since signing a seven-year, $245 million contract with the Angels, although one of those was the shortened 2020 pandemic season.

“I’m definitely not going to be back in the 10-day window,” Rendon said. “It’s been four years running now. So I was angry for a few days, frustrated, mad, everything you could imagine because the game keeps getting taken away from me, right? I want to win, and I want to be out there. I do everything in my power to stay out there, and it seems like nothing is working.”

Rendon is batting .267 with no home runs, three RBIs and three stolen bases in 19 games. He opened the year by going 0-for-19 in five games before batting .357 (20-for-56) over his past 14 games.

He was an All-Star and finished third in the National League MVP voting while playing for the Washington Nationals in 2019. That season, he set career highs with a .319 batting average, 34 homers and 126 RBIs, the latter leading the majors along with 44 doubles.

For his career, Rendon is batting .283 with 158 homers and 660 RBIs in 1,135 games.

Information from The Associated Press was used in this report.

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