Fitch Ratings has revised its GDP growth forecasts for the United States, projecting an increase to 2.1% in 2025 and 2.0% in 2026, up from previous estimates of 1.8% and 1.9%, respectively. This adjustment follows the incorporation of delayed economic data due to last year's government shutdown.
The agency also anticipates two interest rate cuts by the Federal Reserve in the first half of 2026, potentially lowering the federal funds rate ceiling to 3.25%. Inflation is expected to rise, reaching 3.2% by the end of 2026, while the unemployment rate is projected to average 4.6%, reflecting a balance between slowing job growth and reduced labor force expansion.
Fitch Raises US GDP Growth Forecast, Predicts Fed Rate Cuts in 2026
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