<br><div><aside aria-label="advertisement" class="gnt_m gnt_x gnt_x__bv"/><aside aria-label="advertisement" class="gnt_m gnt_x gnt_x__bvd gnt_x__h"/><aside class="gnt_em gnt_em__fp gnt_em_vp__tp gnt_em__el" aria-label="Video - Fed's Daly 'Very Comfortable' With Two 2025 Rate Cuts"><div class="gnt_em_vp_w" data-g-r="vp_tp" data-c-vt="exco" data-t-pl="teal-hero"><button class="gnt_em_vp_a gnt_em_vp__tp_a" data-g-r="vp_ap vp_tg" data-c-vpattrs="{"muted":true,"bContent":false,"an":"usatoday","pn":"USA TODAY","vidNum":0,"docking":true,"exid":"7a94a662-d8e9-49a7-aeba-e8a15c79f0f2","plcmt":"2","iu":"/7103/usatoday/preroll_video/","cut":1}" data-c-vpdata="{"adsEnabled":true,"awsPath":"news","byline":"Bloomberg","canonicalURL":"","contentSourceCode":"VIDE","credit":"Bloomberg","duration":86000,"headline":"Fed's Daly 'Very Comfortable' With Two 2025 Rate Cuts","hlsURL":"https://hlsmedia.gannett-cdn.com/authoring/videos/videoelephant/renditions/77101355007/9f391d6e-e5eb-4021-9c31-521cfd96af07/480p_30fps,720p_30fps,1080p_30fps,master.m3u8?subtitles=77101355007","id":"77101355007","image":{"opto":true,"url":"/gcdn/authoring/videos/videoelephant/thumbnails/77101355007.jpg"},"keywords":"Federal Reserve System","mp4URL":"https://www.gannett-cdn.com/authoring/videos/videoelephant/renditions/77101355007/9f391d6e-e5eb-4021-9c31-521cfd96af07/1080p_30fps.mp4","origin":"Video Elephant","pageURL":{"long":"https://www.usatoday.com/videos/news/2024/12/20/feds-daly-very-comfortable-with-two-2025-rate-cuts/77101355007/"},"promoBrief":"Federal Reserve Bank of San Francisco President Mary Daly said she is \"very comfortable\" with policymakers' median projection of two interest-rate cuts in 2025. Daly added, \"my projection is that it will take many fewer rate cuts next year than we thought but I'll watch the economy and see if that works out.\"","propertyName":"USATODAY","series":"","ssts":{"section":"news","subsection":"","topic":"","subtopic":""},"tags":[{"id":"44b959ec-7c8d-4d3b-a8ee-09fcc6731e13","name":"Federal Reserve System"}],"title":"Fed's Daly 'Very Comfortable' With Two 2025 Rate Cuts","url":"/videos/news/2024/12/20/feds-daly-very-comfortable-with-two-2025-rate-cuts/77101355007/"}" aria-label="Play video"><img alt="" class="gnt_em_vp_img" src="https://www.usatoday.com/gcdn/authoring/authoring-images/2025/01/05/USAT/77476682007-20250103-t-102540-z-1551983906-rc-2-guba-0-m-7-hw-rtrmadp-3-usatrumpenergy.JPG?crop=4751,2673,x0,y247&width=660&height=371&format=pjpg&auto=webp" data-g-r="vp_po" fetchpriority="high" elementtiming="ar-lead-image" decoding="async"/><svg class="gnt_em_vp_svg"><use xlink:href="#gnt_svg_video_play"/></svg></button></div></aside><p class="gnt_ar_b_p">The U.S. <a target="_blank" href="http://www.usatoday.com/story/money/2024/10/30/gdp-report-third-quarter-data/75919587007/" data-t-l=":b|e|k|${u}" class="gnt_ar_b_a">economy</a> and <a target="_blank" href="http://www.usatoday.com/story/money/2024/12/06/jobs-report-november-data/76810946007/" data-t-l=":b|e|k|${u}" class="gnt_ar_b_a">job market</a> are expected to cool in 2025 but still turn in another year of solid growth as <a target="_blank" href="http://www.usatoday.com/story/money/2024/12/11/inflation-cpi-report-data-november-2024/76901908007/" data-t-l=":b|e|k|${u}" class="gnt_ar_b_a">inflation</a> eases further, forecasters say.</p><p class="gnt_ar_b_p">But as a result of President-elect Donald Trump’s <a target="_blank" href="http://www.usatoday.com/story/money/2024/11/06/trumps-election-win-economy-effect/76093835007/" data-t-l=":b|e|k|${u}" class="gnt_ar_b_a">dueling policy agendas</a>, the outlook is leavened with an unusual dose of uncertainty.</p><p class="gnt_ar_b_p">Trump’s plans to impose massive tariffs and deport millions of immigrants who lack permanent legal status are likely to reignite inflation and dampen economic growth, according to forecasters. Yet his pledge to extend and expand the sweeping tax cuts passed in his first term and ease the regulatory burden on businesses could juice the economy and have mixed effects on inflation. </p><aside aria-label="advertisement" class="gnt_m gnt_x gnt_x__lbl gnt_x__al"/><p class="gnt_ar_b_p">So, which of the incoming administration’s contrasting policy agendas is likely to move the needle for the economy this year?</p><p class="gnt_ar_b_p">"The only certainty is uncertainty," said Ryan Sweet, chief U.S. economist of Oxford Economics.</p><p class="gnt_ar_b_p"><strong>Maximize your savings:</strong> <a target="_blank" target="_blank" rel="noopener" data-t-l=":body nav (eco)|e|auto spike click:6|${u}" class="gnt_ar_b_a" href="https://www.usatoday.com/money/blueprint/banking/savings/best-high-yield-savings-accounts/">Best high-yield savings accounts</a></p><p class="gnt_ar_b_p">"If the focus is more on deregulation, tax cuts and potential sweeteners than changes to tariffs and immigration, then growth could be much stronger in 2025," Diane Swonk, chief economist of KMPG U.S., wrote in a report. "Otherwise, risks are for higher inflation and weaker expansion."</p><figure class="gnt_em gnt_em_img"><img class="gnt_em_img_i" style="height:440px" fetchpriority="high" data-g-r="lazy" src="https://www.usatoday.com/gcdn/authoring/authoring-images/2025/01/05/USAT/77476682007-20250103-t-102540-z-1551983906-rc-2-guba-0-m-7-hw-rtrmadp-3-usatrumpenergy.JPG?width=660&height=440&fit=crop&format=pjpg&auto=webp" srcset="https://www.usatoday.com/gcdn/authoring/authoring-images/2025/01/05/USAT/77476682007-20250103-t-102540-z-1551983906-rc-2-guba-0-m-7-hw-rtrmadp-3-usatrumpenergy.JPG?width=1320&height=880&fit=crop&format=pjpg&auto=webp 2x" decoding="async" alt="U.S. President-elect Donald Trump speaks at Turning Point USA's AmericaFest in Phoenix, Arizona, U.S., December 22, 2024."/></figure><h2 class="gnt_ar_b_h2">How will the economy do in 2025?</h2><p class="gnt_ar_b_p">Generally, forecasters see 2025 as a transition year as the economy continues its post-pandemic recovery but at a lower temperature before Trump’s policies fully take effect. For workers, healthy wage growth is likely to keep...</p></div> <style> .wrapper { text-align: center; } </style> <div class="wrapper"> <a class="button" href ="https://www.usatoday.com/story/money/2025/01/06/us-economy-job-market-2025-outlook/77380490007/">Read more <span>➤</span></a> </div>
