The year the U.S. economy bent but didn't break
Summary
The U.S. economy showed strength in 2025 despite facing challenges like inflation and a weaker job market. There are concerns for 2026, but recent GDP growth and a rising stock market highlight its resilience. Efforts like the new tax law may provide additional economic support.Key Facts
- The U.S. economy grew at a 4.3% annual rate in the third quarter of 2025.
- President Trump's "Liberation Day" tariffs affected the stock market and raised fears of a recession.
- Inflation remains above the Federal Reserve's target, impacting family budgets.
- The unemployment rate rose to 4.6% in November 2025.
- The S&P 500 index increased by more than 17% in 2025.
- Job creation is mainly in the healthcare sector, with other industries like manufacturing losing jobs.
- A new tax law passed in July 2025 aims to boost the economy through fiscal stimulus.
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