Summary
The Organization for Economic Co-operation and Development (OECD) predicts that the U.S. economy will grow slower and see higher inflation next year. A major concern is that a potential burst in the AI-driven stock market bubble could worsen economic conditions.
Key Facts
- The OECD forecasts that U.S. economic growth will slow down and inflation will increase next year.
- The labor market in the U.S. is expected to weaken.
- Tariff-related price pressures will continue to affect the economy.
- There is a risk that the AI-driven stock market bubble might burst, which could worsen economic conditions.
- The OECD projects U.S. economic growth to be 2% this year, slowing to 1.7% in 2026 and rising to 1.9% in 2027.
- Inflation in the U.S. is expected to rise to 3% next year from 2.7% this year.
- The organization suggests that more interest rate cuts might be needed.
- The situation is still developing, and more updates are expected.
