TD Securities Sees US Sideways Growth, Sticky Inflation in 2026
TD Securities projects US output growth to move sideways in 2026, with GDP at 2.0% Q4/Q4 and unemployment around 4.3%. The firm notes stagflationary risks from Iran conflict and oil shock, while AI and high-income consumers provide support.
TD Securities forecasts that US economic growth will remain sideways in 2026, slightly below trend. The firm expects Real Gross Domestic Product (GDP) to reach 2.0% on a Q4/Q4 basis, with the unemployment rate hovering near 4.3%.
The outlook is tempered by potential stagflationary risks stemming from the Iran conflict and an oil supply shock. However, continued momentum from artificial intelligence investment and spending by high-income consumers is seen as providing a buffer.
Inflation is expected to remain sticky, adding to the challenge for policymakers. The projection comes amid ongoing geopolitical uncertainty and a mixed macroeconomic backdrop.
Source: FXStreet Forex News