The U.S. economy faces a growing list of headwinds that could threaten growth and stability in 2025. Persistent tariff pressures, rising borrowing costs, low consumer confidence and the resumption of student loan payments each has the potential to slow growth and disrupt economic stability.
Here are 10 key downside risks Dr. Torsten Slok, chief economist for Apollo Global, identified this week.
1. Moody’s Downgrade Raises Borrowing Cost
- Last week, Moody’s cut the U.S. long-term credit rating from Aaa to Aa1, which made borrowing more expensive for consumers and businesses and put pressure on spending and investment.
2. Weakening Housing Demand
- Higher mortgage rates are dampening demand for homes and slowing down one of the U.S. economy’s key growth engines.
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3. Tariffs Cutting into Corporate Earnings
- President Donald Trump recently reduced many of the originally steep tariffs he announced on “Liberation Day,” but the average tariff rate remains elevated. …