We now expect growth to average 2.0% annualised in the second half of the year, before slowing slightly in 2026. The recent slowdown in employment growth and limited pass-through of tariffs to consumer prices has opened the door for the Fed to cut interest rates twice this year, although weaker labour force growth will limit the impending rise in the unemployment rate.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services