Joel Mathis
The American economy at the end of 2025 looks very different from a year ago. Tariffs are higher, AI occupies a greater share of overall spending, and the federal government under President Donald Trump is demanding a greater say in how businesses are run. All that change leaves observers uncertain about what 2026 will bring.
Wall Street is “generally pretty bullish” heading into the new year, said Fortune. The “massive stimulus” unleashed by Trump’s “One Big Beautiful Bill” should kick in in 2026, giving analysts reason for optimism. But those same observers say the “conditions for success” in the American economy are “getting narrower and narrower.” Many of the good vibes are “derived from the promise of AI,” even though there are “questions mounting” about whether massive investment in the sector will pay off. The one word to describe the economy heading into 2026: “precarious.”
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