The US economy is beyond the stage of uncertainty and is preparing for strong growth next year
The head of Federal Reserve of New York John Williams The US economy appears to be on track to overcome an uncertain year, with strong growth expected through 2026, despite slow progress in reducing Inflation.
Williams added, during a speech before the New Jersey Bankers Association, that the year 2025 can be summarized in one word: "Uncertainty"pointing to the impact of geopolitical events and changes in trade policies.
He explained that the American economy has shown great ability to withstand, and appears ready to gain momentum next year.
The goal of reducing inflation
Williams indicated that progress towards the Federal Reserve’s goal of reducing inflation to 2% has stopped temporarily, as the recent rate reached about 2.75%, which is an almost constant level compared to last year.
He explained that customs duties contributed about half a percentage point to inflation, But its impact was less severe than expected.
With regard to the labor market, Williams confirmed the continued slowdown with weak job growth and a gradual rise in the unemployment rate, but stressed that this decline is taking place gradually without indications of a widespread wave of layoffs.
He expected inflation to fall to less than 2.5% next year, before reaching the target of 2% in 2027, indicating that the impact of customs duties will be temporary.
This comes after the Federal Reserve reduced US interest rates rose for the third time in a row last week, in a move supported by Williams.
- For more: Follow Khaleejion 24 Arabic, Khaleejion 24 English, Khaleejion 24 Live, and for social media follow us on Facebook and Twitter
