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The U.S. economy grew 2.1 percent in 2022 despite inflation, rising interest rates and high energy prices, according to new Commerce Department data.  

Breakdown of the numbers: “U.S. gross domestic product (GDP) grew 2.1 percent last year and at an annualized rate of 2.9 percent during the fourth quarter. That means the U.S. economy would have grown by nearly 3 percent if the pace of growth in fourth quarter lasted an entire year.” 

The good news for the economy: “Thursday’s numbers also come amid rapidly falling inflation, which has dropped for six straight months to 6.5 percent annually in December off a high of 9.1 percent last June, effectively boosting the purchasing power of U.S. consumers. This has bolstered hopes for a ‘soft landing’ from the Federal Reserve – lower inflation without a serious, job-killing recession.”  

Full explainer from The Hill’s Tobias Burns

Politico’s Ben White writes that “fourth-quarter economic growth comes in strong, but serious danger lies ahead.” Full read

Gasoline prices rose an average of about 40 cents over the past month.  

Why: “Analysts have attributed the latest jump, which is still down significantly from summer’s peak average of more than $5 per gallon, to both an increased demand for oil and refinery issues.” Full explainer 

The New York Times’s Jordyn Holman writes, “While it’s not unusual for major retailers to announce store closings and some job cuts after the blitz of the holiday season, the recent spate of layoffs is more about structural changes as the industry recalibrates itself after the rapid growth from pandemic-fueled shopping. And it accompanies broader worries about the state of the U.S. economy and layoffs by prominent tech companies.” Explainer of how ‘the retail industry is trying to figure out its correct size’

Rep. Adam Schiff (D-Calif.) announced this morning that he is running for Senate in 2024 to potentially replace Sen. Dianne Feinstein (D-Calif.). 

Does he have any competitors?: Yes, Rep. Katie Porter (D-Calif.) announced earlier this month that she will run for this seat. This could end up being a crowded race as others are considering a bid for this potentially open seat. 

The slightly awkward part: Feinstein is widely expected to retire at the end of this term, but she hasn’t formally announced her plans. Raw Story’s Matt Laslo reports that Feinstein said she won’t announce her 2024 intentions until next year (!)  

Timing: Speaker Kevin McCarthy (R-Calif.) formally blocked Schiff early this week from the House Intelligence Committee, which he chaired. Schiff led several investigations into former President Trump, including serving as the manager of Trump’s first impeachment. McCarthy accused Schiff of lying about former President Trump’s Russia ties. More on why McCarthy blocked Schiff

It’s Thursday, January 361st. I’m Cate Martel with a quick recap of the morning and what’s coming up. Did someone forward this newsletter to you? Sign up here. 

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Former President Trump is making campaign stops in two primary states on Saturday: New Hampshire and South Carolina. 

Keep in mind: Trump has not had a particularly active start to his 2024 presidential campaign. 

Why these stops are key to the lingering questions about Trump’s muted campaign, via The Hill’s Niall Stanage 

The New York Times’s Reid J. Epstein and Lisa Lerer report that “As [former President Trump] prepares for his first public events since announcing his presidential campaign, dozens of members of the Republican Party’s governing body are expressing doubts about his ability to win back the White House and are calling for a competitive primary to produce a stronger nominee in 2024.” 

Wow: The Times spoke with 59 of the 168 members of the Republican National Committee and “found few eager to crown [Trump] their nominee for a third time.”  

Why this is significant for the 2024 presidential race 

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Sen. Rick Scott (R-Fla.) announced yesterday that he will run for reelection to his Senate seat in 2024. 

I.e.: He does not intend to run for president. 

Keep in mind: “Scott’s announcement kicks off the next phase in the Florida senator’s political career, coming less than three months after Republicans blew an opportunity to recapture control of the Senate – a failure that many in the party blamed in part on Scott’s leadership of the National Republican Senatorial Committee (NRSC).” 

“If progressives in Arizona and California are elected, each would help turn the moderate caucus more in their direction, while demonstrating that liberals from competitive districts are capable of winning statewide.”  

Yes, but: “[The] caucus itself may shrink in the process. Several states, including Montana, Ohio and West Virginia, are on Democrats’ watchlists as in danger of going Republican, possibly blunting whatever traction the left makes with hypothetical pickups.” More from The Hill’s Hanna Trudo

From The Hill’s Alexander Bolton 

Roll Call’s Paul M. Krawzak writes, “One tactic could be to line up ‘x date’ with the end of the fiscal year on Sept. 30.” How this could work

From The Hill’s Mychael Schnell and Mike Lillis 

Cases to date: 101.8 million 

Death toll: 1,099,866 

Current hospitalizations: 27,567 

Shots administered: 667 million 

Fully vaccinated: 69.1 percent 

CDC data here.

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NBC News’s Kate Santaliz tweeted a video of Rep. George Santos (R-N.Y.) at a popular *barbecue* restaurant in downtown Washington, D.C. Watch him pose for a selfie 

@theHetal tweeted a screenshot of the options an iPhone gives when you are on the phone and get another call. “My brain literally stops working when I see this.” Screenshot 

©  Ryn Dean

The House and Senate are in. President Biden is in Washington, D.C., and Springfield, Va., today. Vice President Harris is in Los Angeles and will return to D.C. later today.

• 9 a.m.: Biden received his daily briefing. 
• 1:40 p.m.: Biden leaves for Springfield, Va. 
• 3 p.m.: Harris leaves Los Angeles and returns to Washington, D.C. 
• 5 p.m.: First and last House votes. Today’s House agenda

All times Eastern. 

• 2:45 p.m.: Biden delivers remarks in Springfield, Va., on the economy. Livestream 
• 5:30 p.m.: Biden and first lady Jill Biden host a Lunar New Year reception in the East Room of the White House. Livestream 
• 6:30 p.m.: NBC News’s Lester Holt interviews Southwest CEO Bob Jordan on “Nightly News.”  

Today is National Peanut Brittle Day. 

Washingtonian published its list of “The 100 Very Best Restaurants in Washington.” The list

And because you read this far, I’ll leave you with a cat who has *instant* regret.

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