US Economy: Trump's Tariffs and AI Policies to Shape 2026

The US economy faces contradictory trends under President Trump's protectionist pivot, with tariffs potentially elevating prices and dampening hiring. Despite evidence of these trends, the economy remains relatively strong due to consumer spending and AI investment. The Federal Reserve has cut interest rates to support the labor market, which may be weaker than official data suggests. The year 2026 will likely answer questions about the US economy's resilience.