CHARLOTTE, North Carolina (ICIS)–There is uncertainty about the extent that stated US policy goals on tariffs will be achieved and their impact on the economy this year and beyond. Yet for now, the US economy remains on solid ground.
An extension of the 2017 tax cuts would be positive, as would deregulation and higher defense spending. On the other hand, immigration restrictions and tariff increases would take away from growth and could foster inflationary pressures. It is possible that new tariffs will be measured.
Higher inflationary pressures of late have raised interest rates, which could subtract from US growth.
It is clear from looking at year-earlier comparisons that the US economy is slowing. The US remains in the late stage of the business cycle, but there is likely more room for the economy to run.
Published by: www.icis.com
Kevin Swift
24-Jan-2025
