From stubbornly high living costs to a softer labor market, economists say these are the forces that will shape the year ahead.

The economy in 2025 was filled with contradictions, as growth was healthy while hiring slowed, inflation stayed elevated and unemployment rose.

Bank of America data reveals a stark K-shaped economy as higher-income Americans spend 2.6% more while lower-income households manage just 0.6% growth.

The American economy at the end of 2025 looks very different from a year ago. Tariffs are higher, AI occupies a greater share of overall spending, and the federal government under President Donald Trump is demanding a greater say in how businesses are run. All that change leaves observers uncertain about what 2026 will bring.

President Donald Trump says he expects to nominate a new Federal Reserve chair this month. When that happens, Trump will have run out of excuses: This will officially become his economy, for better or worse.

Most adults (68 percent) now say economic conditions are getting worse, compared with 29 percent who think they’re improving, according to Gallup. That gap has widened since the beginning of 2025.

The U.S. economy chugs into the new year in stronger shape than many forecasters had expected. But Americans remain wary about the high cost of living.

The White House has been quite eager to tout that data because U.S. markets appear to be up—a fair bit. Aides often crow about new market highs. And Trump often claims that the United States is “the hottest country anywhere in the world,” and that all foreign leaders admit it.

The global economy faced many hurdles in 2025. The U.S. government upended longstanding economic wisdom in a manner many economists feared would harm both the American economy and those of other countries.

By some measures, China's economy is looking resilient, with strong exports and breakthroughs in artificial intelligence.

Economists may have a pretty dismal record with predictions. But we're still interested in what they see in their non-existent crystal balls.