People walk around the Financial District near the New York Stock Exchange (Reuters)
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CNBC TV1829-12-2025, 18:29

US Economy Eyes Strong 2026 with Tax Cuts, AI Boom, but Risks Loom

  • US economy set for stronger 2026 driven by Trump's tax cuts, AI boom, and Fed rate reductions.
  • Tax cuts expected to boost consumer spending via fatter refunds and corporate capital spending.
  • Impact of Trump's tariffs projected to recede, allowing wages to outpace inflation.
  • Continued investment in AI infrastructure by tech giants like Amazon and Google.
  • Risks include a weakening labor market, elevated inflation, and potential consumer saving over spending.

Why It Matters: US economy anticipates 2026 growth from tax cuts and AI, but faces labor market and inflation risks.

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