Institution: U.S. inflation is expected to slow to 2.4%, creating conditions for the Federal Reserve to cut interest rates twice next year

Odaily Planet Daily reports that the Oxford Economics Research Institute predicts the U.S. economy will maintain steady growth in 2026 and 2027, primarily driven by artificial intelligence investments, tax incentives, and spending by high-income groups. The institute expects U.S. GDP growth to be 2.8% in 2026 and 2.3% in 2027, following a 4.4% annualized GDP growth in Q3 2025. Investments related to artificial intelligence and non-tech sectors are on the rise, productivity continues to improve, and stock market gains and tax cuts support consumer spending. Inflation is expected to slow to 2.4%, creating conditions for the Federal Reserve to cut interest rates twice next year. A decline in immigration and weakening housing demand may further ease inflation pressures. Overall, the U.S. economy remains fundamentally strong, but it still remains highly sensitive to stock market performance. (Jin10)