Three reasons why the economy is still strong
RSM chief economist Joe Brusuelas joins Market Domination to discuss what is next for the US economy. Brusuelas points out that the economy grew at a 3% pace in the second half of 2024, while inflation remains persistent, particularly in the services sector. Combined with uncertainty surrounding the incoming presidential administration, "it spooked the market a little bit," he tells Yahoo Finance. Looking ahead to 2025, he projects an average 10-year yield of 4.5%, warning that if yields reach 5%, conditions could "get a little shaky." He references March 2023, when the 10-year yield exceeded 5%, triggering a mini-banking crisis among local and regional banks that required Federal Reserve intervention before things "materially improved." However, he observes that the post-pandemic economy has become more inflation-prone, stating "this economy is growing at a much faster pace than the long term trend would otherwise suggest," adding "Our framework looks pretty good right now." So what is driving that economic growth? Brusuelas gives his three reasons why in the video above. To watch more expert insights and analysis on the latest market action, check out more Market Domination here. This post was written by Angel Smith
