It's Almost 2026. How's the Economy?

What It Covers

Wall Street Journal economists assess 2025's economic performance, describing it as "uncertain" and "asymmetrical" with stark divides between wealthy asset owners and struggling younger workers.

Key Questions Answered

• •Tariff Impact: Trump's tariffs produced milder inflation effects than predicted because companies rerouted goods through Southeast Asia and administration rolled back some measures intermittently.
• •Labor Market Shifts: Healthcare jobs grow while other sectors contract as CEOs embrace AI efficiency beliefs, creating low-hire, low-fire environment that particularly hurts recent graduates.
• •Wealth Concentration: Consumer spending exceeds $1 trillion during holidays but comes primarily from wealthy stock owners, driving companies to abandon mass market for premium-focused strategies.
• •Housing Market Catalyst: Mortgage rates dropping to 5% range could unlock housing market as homeowners with 3% pandemic-era rates might finally sell and upgrade properties.