The 2026 economic outlook

Economics power duo Jane Foley and Christian Lawrence return to reflect on the first year of the Trump administration and share their 2026 outlook for the US and European economies. They explore the ripple effects of the AI boom on business and growth, as well as the persistence of inflation across areas like housing and healthcare. The discussion also covers interest rate and currency dynamics, uncertainty about an independent Federal Reserve, and the limits of traditional consumer confidence surveys. Finally, they touch on the impact of the Trump administration's ongoing geopolitical and trade tensions and examine how immigration policies are shaping both population trends and economic activity.