Donald Trump has returned to Washington, promising a new golden age for our nation. The economy entered 2025 on a relatively steady note, with the National Association of Business Economics (NABE) reporting a reduced likelihood of a prolonged slowdown. NABE President Emily Kolinski Morris highlighted that recession risks are diminishing, though there are uncertainties remaining regarding the new administration's policies. President Donald Trump has introduced several pro-business executive orders to combat this. Some of these include measures to support cryptocurrency, ease energy restrictions, and reduce federal government spending. Additionally, Trump announced a $500 billion investment from OpenAI, Softbank, and Oracle to expand artificial intelligence in the U.S. He also signed in new tariffs on Canada, Mexico, and China.
Despite these positive developments, inflation shall always remains a concern. While 65% of NABE economists expect stable prices over the next three months, 35% anticipate price increases. The consumer price index rose 2.9% annually in December, with core CPI up 3.2% annually. Inflation, though below its peak in July 2022, remains above the Federal Reserve's 2% target. During a remote appearance at the World Economic Forum, Trump blamed the Biden administration for high inflation and called for immediate interest rate cuts. Policymakers are expected to keep rates unchanged at the upcoming Fed meeting, maintaining the Federal Funds Rate between 4.25%-4.50%. GDP growth for the fourth quarter is projected at 3%, consistent with the previous quarter.
The economic landscape under Trump's second term will be closely monitored by investors and economists, who will track key indicators such as the stock market, cost of living, trade, jobs, manufacturing, and oil production to analyze the how his policies turnout. His ambitious plans laid out aim to bolster economic growth, but the actual impact will only become evident over time as data emerges from the daily, weekly and monthly reports. As the U.S.A navigates through a massive change in policy shifts and economic strategies, these outcomes will provide insights into the success of Trump's vision for America's economic future. With a positive outlook over the next few years, you can secure funding for your business with a variety of our SBA Programs.
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