Moody's chief economist predicts that the economy may encounter challenges in 2025.

• Mark Zandi, chief economist at Moody's Analytics, stated that the economy is performing exceptionally well as President-elect Donald Trump prepares to take office.
• Zandi stated, "I believe there may be approaching storms."

Mark Zandi, the chief economist at Moody's Analytics, stated that the economy is performing exceptionally well as President-elect Donald Trump prepares to take office.

At the Consumer Federation of America's financial services conference on Wednesday, Zandi highlighted some positive aspects, including a GDP growth rate of approximately 3%, strong productivity and business formation rates, and a rising stock market.

"The economy can weather a lot of storms," Zandi said.

He added, "I believe there may be some potential storms approaching next year under the new administration."

Immigration policy, tariffs could affect economy

Trump's prompt action on deporting immigrants and imposing tariffs could significantly affect the U.S. economy, as predicted by Zandi.

"Zandi stated that he believes President Trump will fulfill his campaign promises and will be very assertive in implementing his policies."

Zandi stated that the economy's strength is largely due to immigration.

In May, Goldman Sachs analysts noted that recent immigrants have been disproportionately drawn to the tightest parts of the labor force in 2022, helping to alleviate labor shortages in those areas.

Job losses could result from the uncertainty created by tariffs, according to Zandi.

Tariffs are also likely to impact people's spending, he said.

According to Zandi, the tax increase will result in higher expenses for consumers.

A recent report from the National Retail Federation states that Trump's universal tariff proposals could lead to a significant increase in prices for clothing, toys, furniture, household appliances, footwear, and travel goods.

Trump has stated that he would apply a 10% or 20% tariff on all imports.

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Nearly all six retail categories examined by the NRF are expected to experience "dramatic" double-digit percentage price spikes as a result of the tariffs.

The cost of clothing could increase by up to 18.1%, the analysis revealed. This means an $80 pair of men's jeans would now cost between $96 and $100.

The new prices will put pressure on consumer budgets, particularly low-income households who spend three times as much of their monthly budget on clothing as high-income households do, according to the Bureau of Labor Statistics.