Institutions: US inflation is expected to slow to 2.4%, paving the way for two Fed rate cuts next year.

According to ME News, on February 6th (UTC+8), Oxford Economics predicts that the US economy will maintain robust growth in 2026-2027, primarily driven by investment in artificial intelligence, tax incentives, and spending by high-income groups. The institution projects US GDP growth of 2.8% in 2026 and 2.3% in 2027, following a 4.4% annualized GDP growth rate in the third quarter of 2025. Investment in AI-related and non-technology sectors is rising, productivity continues to improve, and rising stock markets and tax cuts are supporting consumer spending. Inflation is expected to slow to 2.4%, which will create conditions for two interest rate cuts by the Federal Reserve next year. Declining immigration and weakening housing demand may further ease inflationary pressures. Overall, the fundamentals of the US economy remain strong, but it remains highly sensitive to stock market performance. (Source: ME)