- Economists modestly raised U.S. GDP growth forecasts to 2% for both 2025 and 2026, up from 1.9% for 2026 previously.
- Inflation expectations edged lower, with 2026 CPI projected at 2.8%, indicating easing price pressures.
- Interest-rate forecasts remained steady, with the Fed's policy rate seen at 3.25% by end-2026, implying gradual monetary easing ahead.
Economists have nudged up their outlook for U.S. economic growth in Bloomberg's latest survey, released around December 18, 2025, reflecting a cautiously optimistic view amid ongoing challenges. The revision to 2% GDP growth for both 2025 and 2026, from a prior 1.9% for 2026, suggests a resilient but decelerating expansion, according to people familiar with the survey results. This adjustment aligns with broader trends of consumer spending holding steady and global supply chain dynamics stabilizing, though trade tensions linger as a headwind entering 2026.
Inflation forecasts took a slight dip, with 2026 CPI now expected at 2.8%, down from earlier estimates, signaling that price pressures may be moderating faster than anticipated. "The data points to a gradual easing in inflation, which supports the case for a soft landing," one economist noted, speaking on condition of anonymity. Efforts to reach the Federal Reserve for comment were not immediately successful, but market watchers are closely monitoring these projections as they shape investment strategies for the coming year.
Interest-rate expectations held firm, with the Fed's policy rate projected to settle at 3.25% by the end of 2026, unchanged from previous surveys. This steady outlook implies a measured pace of monetary easing, with analysts weighing the balance between supporting growth and containing inflation. Recent discussions among investors, as highlighted in BNN Bloomberg coverage on December 18, 2025, have focused on themes like diversified portfolios to navigate slowing U.S. growth and global trade issues, underscoring the cautious optimism in financial circles.
Short-term, the revised forecasts bolster investor confidence in reliable returns, even as headwinds like persistent inflation and trade tensions persist. Long-term, the gradual Fed rate cuts signal a potential soft landing, though experts warn that risks remain elevated. As one market participant put it, "We're seeing a shift toward more stable growth, but it's fragile—any disruption could quickly alter the trajectory." The survey's timing, amid year-end economic assessments, adds urgency to these insights, with implications for asset allocation and risk management strategies moving into 2026.
Correction: An earlier version of this article misstated the timing of the survey release; it was around December 18, 2025, not earlier in the month.
