The U.S. economy entered 2026 with modest momentum following a mixed close to last year. Labor market conditions remain relatively soft, though early-quarter hiring trends show slight improvement compared to late 2025.
Unemployment has ticked up slightly, but not at a pace that signals significant deterioration. At the same time, inflation has proven somewhat sticky in early 2026, reinforcing a cautious stance from the Federal Reserve despite some easing in interest rates.
