A promising economic horizon for the next US president

As we approach 2025, the US economic landscape looks increasingly favorable. Current trends point to a positive outlook for the next few years, setting the stage for a potential economic boom. But who will get the credit for this promising scenario?

Economic stabilization and investment in infrastructure

The US economy is expected to stabilize significantly in the coming years. With inflation normalizing, the Federal Reserve is preparing to lower interest rates. Significant infrastructure investments initiated during the Biden administration are expected to begin to yield significant results by 2025 and 2026. This includes large-scale projects funded by the Infrastructure Investment and Jobs Act of 2021, which allocated more than $850 million to upgrade the Montgomery Locks and Dam in Western Pennsylvania.

The influence of federal policy

Although President Biden has announced he will not seek re-election, handing the Democratic torch to Vice President Kamala Harris, his administration's policies have laid the groundwork for economic growth. Massive investments in green energy, manufacturing and infrastructure will support growth for years to come. This includes building new dams, upgrading airports and semiconductor factories that promise to strengthen the economy.

The role of the Federal Reserve in controlling inflation

The Federal Reserve's efforts to control inflation have shown positive results, with their desired inflation rate peaking above 7% and projected to decline to 2% by the end of 2026. Accordingly, interest rates, currently at 5.3%, are expected to decline. , which makes borrowing more affordable and stimulates economic activity.

Infrastructure projects aimed at transforming the economy

A wave of infrastructure projects is poised to transform the US economy. The Lower Inflation Act, the CHIPS Act, and the Infrastructure Act jointly target investments in green energy, semiconductor manufacturing, and major public works. Although only a portion of these funds have been spent so far, experts predict that the full effect will be felt around 2025-2027.

Potential political implications

A positive economic outlook provides a great opportunity for the next president. Former President Donald Trump, who is already hinting at a run, could use this optimistic forecast during his campaign. The Republican platform is likely to promise lower inflation and lower interest rates while positioning the party as champions of infrastructure and manufacturing.

Long-term benefits of current investments

Real economic changes caused by current policies may take time to manifest. However, as projects such as the Montgomery Lock and Dam and the Pennsylvania Manufacturing Competitiveness Center come to fruition, they will create significant jobs and economic benefits. These events, even under a new administration, can be seen as a lasting legacy of the Biden era.

In summary, the next US president will likely inherit an economy with enormous potential. While many factors contribute to this optimistic outlook, the foundation laid by the Biden administration's policies will play a critical role. Moving forward, it will be interesting to see how the political landscape adapts to these economic realities.

Additional source of information Bankrate  

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