Yahoo Finance Video
Bank of America (BAC) senior US economist Aditya Bhave joins Market Domination to discuss the United States' global economic standing ahead of President-elect Donald Trump's return to the executive office. Bhave notes that the US currently has "very solid economic momentum," maintaining a 3% growth rate over the past two years. He attributes this success to declining inflation and accelerating labor productivity, while other global productivity metrics are falling. "We're still pretty confident. We think we can grow at 2.3% this year [2025], which would be trendish," he tells Yahoo Finance. Regarding the incoming Trump administration's impact, Bhave explains that while deregulation expectations are already priced into markets and achievable through executive action, "greater uncertainty" surrounds trade and fiscal policy decisions. "We think the policy mix will be roughly awash for growth, but we do think it will be somewhat inflationary," Bhave states, adding that even without Trump's policies being implemented, he expects economic growth between 2 to 2.5% in 2025. Nevertheless, Bhave observes that from a global perspective, "the rest of the world is in a more difficult position" than the US. 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