What will the U.S. economy look like in 2026? Experts weigh in on 5 key questions.
CBS News••business
Key Points:
- The U.S. economy showed unexpected resilience in 2025, with accelerated growth and moderated inflation despite tariffs, but many Americans still struggle with affordability due to elevated prices and rising utility costs.
- Inflation is expected to cool to about 2.4% in 2026, remaining above the Federal Reserve's 2% target, which will continue to strain household budgets unless wages grow faster than inflation for several years.
- The Federal Reserve faces a dilemma between controlling inflation and supporting employment, with only one rate cut projected for 2026, though further cuts are possible if the labor market weakens; President Trump advocates for more aggressive rate reductions.
- Housing affordability may improve modestly in 2026 as mortgage rates stabilize and
