Inflation Will Maintain its Hold: Elevated prices are likely to continue in the months ahead, as the Federal Reserve predicts inflation will remain above 2%. Reuters notes that potential policy changes and the nation’s housing shortage are key contributors. These elevated rates are expected to impact business operating costs and consumer pricing alike.

Mortgage Interest Rates Will Gradually Decrease: U.S. News & World Report notes that, although the rate for a 30-year fixed mortgage is expected to remain above 6%, economists anticipate we’ll see some slow decline in the coming year. For those looking to purchase properties, that means slightly lower borrowing costs — but at rates that remain elevated when compared to pre-2023 stats.

An Economic Recession is Unlikely, But Growth Will Be Slow: Economists at California’s Chapman University note that the U.S. will see real GDP growth reduced to approximately 1.8% — down from 2024’s 2.7%. Tightening financial policies contribute to that trend, but government spending’s support of consumer income will help to sidestep recession risks.

Tariffs Will Introduce Business Obstacles & Price Hikes: Reuters reports that the incoming presidential administration’s proposed tariffs on imports from countries such as China, Mexico and Canada are likely to increase the costs of goods and materials. At the same time, however, businesses expect to see an increase in tax cuts — and a decrease in regulations — as a new administration settles in.

Did You Know?

Central Bank has proudly ranked among Houston’s Top Workplaces for two consecutive years and is #1 among local mid-size companies. Such designations are more than mere bragging rights — instead, they offer big benefits for our valued clients. These include: