Palm Beach Gardens Living - December 2025

D E C E M B E R 2 0 2 5 | PA L M B E A C H G A R D E N S L I V I N G 5 5 PA L M B E A C H G A R D E N S L I V I N G | N O V E M B E R 2 0 2 5 A s of early November 2025, the U.S. economy continues to show resilience, though clouds of uncertainty remain on the horizon. In Q2, real GDP for the Bureau of Economic Analysis rose at an annualized rate of 3.8% , up from the earlier estimate of 3.3%. Meanwhile, at its October meeting the Federal Open Market Committee (FOMC) lowered the target range for the federal funds rate to 3.75% - 4.00% . On inflation and employment: Inflation is moderating — the CPI rose roughly 3.0% year-over-year as of September. The labor market remains firm but shows signs of easing — hiring is softer and some labor force participation measures are declining. Looking ahead to December and beyond, central bank policy remains finely balanced : The Fed has made a rate cut but emphasized that further easing is not pre-set, and incoming data will drive decisions. From a strategic vantage, the key considerations for our clients are: • Elevated private investment (especially in technology and AI) may help sustain growth, yet it also presents upside inflation risk. • With GDP growth still above 3 % in Q2 but forward forecasts pointing to a deceleration in H2, there’s a risk of growth falling to the low-2% or even ~1% range if demand softens. • Policy uncertainty (both monetary and fiscal) remains elevated—this is a structural drag and a source of risk. In short: The U.S. economy is in decent shape for now, but investors and clients should remain alert to weakening momentum, tighter financing conditions, and global risks. Our recommended focus is maintaining exposure to quality assets, keeping liquidity cushions, and favoring companies with strong cash flows and pricing power. Securities and investment advisory services offered through Osaic Wealth, Inc. Member FINRA/SIPC. Osaic Wealth is separately owned, and other entities and/or marketing names, products, or services referenced here are independent of Osaic Wealth. - By Jeremy L. Wilmes MBA, CFP,®ChFC®CLU,®CASL, RICP® - Economic Update EXPERT CONTRIBUTOR FOR DECEMBER