We asked experts to rate the U.S. economy in 2025. Here's what they said.
Updated on: December 24, 2025 / 10:19 AM EST / MoneyWatch
TL;DR
- The U.S. economy in 2025 experienced higher tariffs, a hiring slowdown, and rising unemployment, yet defied recession warnings.
- Economic growth reached its fastest pace in two years, inflation rose less than anticipated, and the stock market hit new highs.
- Consumer confidence surveys show widespread pessimism, with many Americans rating the economy poorly due to high prices.
- A 'K-shaped' economy is noted, with higher-income consumers spending robustly while lower- and middle-income consumers pull back.
- The labor market saw a slowdown in hiring and an increase in layoffs, with the unemployment rate rising to 4.6% by November.
- The Federal Reserve has cut interest rates three times since September to encourage business expansion and hiring.
- Despite fears, President Trump's tariffs had a more muted impact on inflation than initially expected, partly due to companies stockpiling goods.
- Inflation remains sticky, with the Consumer Price Index near 3% throughout the year.