- greensea
- 30 Dec 2024 05:59 AM
- Global News
The US economy is facing uncertainty ahead of Donald Trump's inauguration, with the Conference Board's Expectations Index dropping to a five-month low. This decline in consumer confidence is a significant concern, as it can have a ripple effect on the US stock market and the national economy ¹.
Rising inflation and interest rates, coupled with Trump's reportedly inflationary economic policies, are fueling fears of a potential recession. The proposed tariffs, for instance, could lead to higher prices for American consumers and businesses, ultimately affecting the economy's growth.
However, it's essential to note that the US economy has shown resilience in the past. Despite the current downturn in consumer confidence, the economy's fundamentals remain strong, with robust consumer spending, high business investment, and lower interest rates ¹.
Key factors to watch:
- Consumer spending: Will continue to drive economic growth, with a forecasted increase of 2.4% in 2024 ¹.
- Business investment: Expected to rise 4.2% in 2024, driven by the Inflation Reduction Act and the CHIPS and Science Act ¹.
- Inflation: Forecasted to decrease, with the consumer price index (CPI) expected to hit 2.7% by the fourth quarter ¹.
While there are valid concerns about the US economy, it's crucial to monitor these key factors and wait for the Trump administration's policies to take shape before making any conclusions.
