RSM US LLP’s Post

As we prepare for 2025, a new chapter unfolds for the U.S. economy. Federal Reserve rate cuts, paired with the fiscal policies of a second Trump administration, could reshape economic dynamics. Key highlights and challenges: • Expected renewal of the Tax Cuts and Jobs Act of 2017, with potential corporate tax reductions and restored state and local tax deductions. • The Fed’s cautious approach to rate cuts amid concerns of economic overheating. • Potential disruptions from tariffs on Chinese goods, tighter immigration policies and the fiscal strain of unfunded tax cuts and spending increases. As policies evolve, businesses must navigate potential disruptions—and seize opportunities. Learn more from our Chief Economist Joseph Brusuelas in the latest edition of The Real Economy: https://rsm.us/3BvXAF9

  • Infographic titled 'Growth outlook: Key areas to watch,' featuring three sections with distinct colors, concise text, and related visuals:

Green section: 'Tariffs – While broad 10% tariffs are unlikely early next year, swift tariffs on Chinese goods may cause one-time price increases without driving sustained inflation,' paired with an image of a warehouse and forklift.

Orange section: 'Immigration – Tighter immigration policies are unlikely to disrupt the labor supply early next year but could tighten the market over time, potentially driving wage-induced inflation,' alongside an image of workers in motion.

Gray section: 'Fiscal policy – The prospect of unfunded tax cuts and spending increases is driving higher long-term interest rates as investors question the sustainability of fiscal expansionary policy,' with an image of a financial data screen.

Footer includes the RSM logo and text: 'The Real Economy | December 2024.'

Interesting insights on how upcoming policies could reshape the economic landscape—definitely important for businesses to stay informed!

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