U.S. Economic Outlook for 2025

This document is a report detailing the economic outlook for the United States in 2025, prepared by Huntington Private Bank. It outlines expectations for continued economic expansion, with real GDP growth projected at 2.0% year-over-year, a decrease from 2.5% in 2024. The report notes that while the labor market remains strong and inflation is approaching the Federal Reserve's 2% target, risks to the economic outlook are tilted to the downside due to uncertainties in economic policies. The Federal Open Market Committee is expected to implement two to three quarter-percentage-point cuts to the federal funds rate in 2025. Key factors driving growth include consumer spending, business investment, and government spending, supported by initiatives such as the Infrastructure Investment and Jobs Act. The document also discusses the implications of potential tariffs and immigration policies on economic growth, as well as the expected rise in the 10-year Treasury yield amidst solid economic fundamentals.