From stubbornly high living costs to a softer labor market, economists say these are the forces that will shape the year ahead.

Economists may have a pretty dismal record with predictions. But we're still interested in what they see in their non-existent crystal balls.

President Donald Trump says he expects to nominate a new Federal Reserve chair this month. When that happens, Trump will have run out of excuses: This will officially become his economy, for better or worse.

Most adults (68 percent) now say economic conditions are getting worse, compared with 29 percent who think they’re improving, according to Gallup. That gap has widened since the beginning of 2025.

The White House has been quite eager to tout that data because U.S. markets appear to be up—a fair bit. Aides often crow about new market highs. And Trump often claims that the United States is “the hottest country anywhere in the world,” and that all foreign leaders admit it.

The economy in 2025 was filled with contradictions, as growth was healthy while hiring slowed, inflation stayed elevated and unemployment rose.

Perhaps this is because, for too long, we have answered the question “Whom should the economy serve?” with “the few” rather than “the many.” Wealth and power have grown increasingly concentrated, as owning one’s own business and home have become increasingly out of reach for many Americans.

The U.S. economy chugs into the new year in stronger shape than many forecasters had expected. But Americans remain wary about the high cost of living.

The International Monetary Fund (IMF) says that although "the tariff shock is smaller than originally announced", it is a key reason why it now expects the rate of global economic growth to slow to 3.1% in 2026. A year ago, it predicted a 3.3% expansion this year.