The post Here’s what Wall Street is predicting appeared on BitcoinEthereumNews.com. The outlook for the U.S. economy in 2026 is taking shape as major Wall Street firms release their early forecasts.  This follows a mixed 2025, characterized by slowing but still positive growth. GDP grew strongly in the second quarter, but the latter half of the year is expected to cool as consumer confidence weakens, retail spending softens, and tariffs and higher living costs weigh on households. For 2026, most analysts anticipate continued expansion, though they differ on growth strength, the trajectory of inflation, and the risks that could shape the year. Bank of America Bank of America expects the U.S. to enter 2026 with solid momentum, projecting growth of 2.4% for the year. The bank points to a series of tailwinds that it believes will sustain the expansion. The OBBBA stimulus is expected to add nearly half a percentage point to GDP through stronger consumer spending and higher capital expenditures, with additional momentum from the lagged effects of Fed rate cuts in the second half of the year. Bank of America also expects a more supportive trade environment, ongoing AI-driven investment, and mechanical base effects from earlier disruptions to further lift growth. Inflation is projected to remain above target, with headline PCE at 2.6% and core at 2.8%, while unemployment gradually eases to 4.3%. Overall, the bank sees 2026 as broadly positive, though macro risks remain. JPMorgan JPMorgan has taken a more cautious stance. While 2025 has been strong for equities, with the S&P 500 up double digits on AI-driven enthusiasm, the bank expects greater volatility in 2026. Its research highlights emerging vulnerabilities, including cracks in the labor market, persistent cost-of-living pressures, and sticky inflation. The bank also flagged several risks that could reshape the 2026 outlook. Tariffs remain a major uncertainty, with the Supreme Court reviewing Trump-era policies, potentially… The post Here’s what Wall Street is predicting appeared on BitcoinEthereumNews.com. The outlook for the U.S. economy in 2026 is taking shape as major Wall Street firms release their early forecasts.  This follows a mixed 2025, characterized by slowing but still positive growth. GDP grew strongly in the second quarter, but the latter half of the year is expected to cool as consumer confidence weakens, retail spending softens, and tariffs and higher living costs weigh on households. For 2026, most analysts anticipate continued expansion, though they differ on growth strength, the trajectory of inflation, and the risks that could shape the year. Bank of America Bank of America expects the U.S. to enter 2026 with solid momentum, projecting growth of 2.4% for the year. The bank points to a series of tailwinds that it believes will sustain the expansion. The OBBBA stimulus is expected to add nearly half a percentage point to GDP through stronger consumer spending and higher capital expenditures, with additional momentum from the lagged effects of Fed rate cuts in the second half of the year. Bank of America also expects a more supportive trade environment, ongoing AI-driven investment, and mechanical base effects from earlier disruptions to further lift growth. Inflation is projected to remain above target, with headline PCE at 2.6% and core at 2.8%, while unemployment gradually eases to 4.3%. Overall, the bank sees 2026 as broadly positive, though macro risks remain. JPMorgan JPMorgan has taken a more cautious stance. While 2025 has been strong for equities, with the S&P 500 up double digits on AI-driven enthusiasm, the bank expects greater volatility in 2026. Its research highlights emerging vulnerabilities, including cracks in the labor market, persistent cost-of-living pressures, and sticky inflation. The bank also flagged several risks that could reshape the 2026 outlook. Tariffs remain a major uncertainty, with the Supreme Court reviewing Trump-era policies, potentially…