From Financial Modeling Prep: 2024-11-27 04:52:11

Deutsche Bank predicts a challenging economic outlook for the U.S. in 2025, citing higher interest rates, geopolitical tensions, and a cooling labor market as factors that will slow economic growth. Recessionary concerns loom due to minimal growth, tight credit conditions, and Federal Reserve policies targeting inflation.

Inflation remains above the Fed’s 2% target, prompting potential monetary tightening. Higher interest rates are expected to limit borrowing and slow GDP recovery. Job growth is slowing, leading to shrinking job openings and possible rising unemployment risks, while decelerating wage growth may strain consumer spending.

Geopolitical uncertainties, trade disputes, and a Chinese economic slowdown pose external risks to the U.S. economy. Despite these challenges, investments in technology and government interventions like infrastructure spending could offer support and mitigate the impact of slower growth. Stakeholders should prepare for potential turbulence but remain cautiously optimistic about the future.



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