Policy Volatility Clouds 2026 Economic Outlook Despite Growth Optimism
December 23, 2025
Economic forecasts suggest modest expansion for the US in 2026, with Goldman Sachs estimating a 2.6% GDP growth driven by AI investment. However, ongoing policy uncertainty from the Trump administration may jeopardize these projections, leading to political disruptions influencing midterm election results. Current indicators are favorable for opposition messaging, as negative consumer sentiment persists and inflation remains a top concern. GDP growth for 2025 is projected at 2%, lower than Biden’s last two years, while unemployment has increased from 4% at Biden’s exit to 4.6% currently.