Palm Beach Gardens Lving - February 2026

F E B R U A R Y 2 0 2 6 | 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 - By Jeremy L. Wilmes MBA, CFP,®ChFC®CLU,®CASL, RICP® - Economic Update EXPERT CONTRIBUTOR FOR FEBRUARY A s we enter 2026, the U.S. economy continues to demonstrate resilience, though signs of slowing momentum are becoming more evident. Economic growth remained solid earlier in 2025, with real GDP expanding at a strong pace mid-year. However, growth cooled meaningfully in the second half, and consensus forecasts now point to GDP growth in the 1.8%-2.0% range for 2026, well below the post-pandemic highs. Monetary policy has begun to shift. In late 2025, the Federal Reserve lowered the federal funds rate, reflecting progress on inflation and a desire to support economic activity. Fed officials have emphasized that future policy decisions will be data-dependent, balancing moderating inflation against a gradually softening labor market. While further easing is possible, it is not pre-committed. Inflation has continued to cool but remains above the Fed's long-run target. Recent data show headline inflation running near 2.7%-3.0%, suggesting that price pressures are easing at a measured pace rather than falling rapidly. This gradual disinflation supports a cautious approach to further rate cuts. Labor market conditions have softened compared with prior years. Job growth has slowed, and the unemployment rate has drifted higher, hovering around the mid-4% range. While this represents a cooling from historically tight conditions, the labor market has not shown broad-based stress. Looking ahead, the economic outlook remains finely balanced. Ongoing private-sector investment, particularly in technology and artificial intelligence, may provide support to growth, but policy uncertainty, global risks, and tighter financing conditions remain meaningful headwinds. Bottom line: The U.S. economy is still expanding, but momentum is slowing. For investors, maintaining exposure to high-quality assets, ample liquidity, and companies with strong cash flows and pricing power remains a prudent strategy in an increasingly uncertain environment. To work with Vicki, reach her at 443- 255-1200 or vicki@liebowitzrealty.com. 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.