As 2025 drew to a close, the U.S. economy shows slower momentum and mixed signals. Labor market conditions have clearly softened compared with earlier in the year, with hiring sluggish and unemployment drifting upward. At the same time, inflation has moderated toward more sustainable levels keeping the Federal Reserve cautious.
The long government shutdown earlier in Q4 distorted some data releases and contributed to uncertainty in key statistics such as employment and inflation timing.
