Palm Beach Gardens Lving - June 2026

J U N E 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 - By Jeremy L. Wilmes MBA, CFP,®ChFC®CLU,®CASL, RICP® - A s of early May 2026, the U.S. economy continues to expand, though at a more measured pace compared to earlier in the post-pandemic cycle. After solid performance through much of 2025, economic momentum softened into late 2025 and the first half of 2026. Current consensus expectations point to real GDP growth of approximately 1.8%-2.0% this year, consistent with continued expansion, but reflective of a slower and more uneven trajectory. Monetary policy remains a central driver of the outlook. After beginning its rate-cutting cycle in late 2025, the Federal Reserve has maintained a cautious, data-dependent stance. While inflation has moderated meaningfully from prior peaks, it remains above the Fed's 2% long-term target, with recent readings still hovering in the 2.4%-2.8% range. As a result, policymakers appear inclined to proceed gradually, balancing progress on disinflation against signs of softening economic activity. Labor market conditions have continued to normalize. Job growth has slowed from previously robust levels, and the unemployment rate has edged into the mid-4% range. While this represents a cooling from historically tight conditions rather than a sharp deterioration, leading indicators suggest hiring demand is easing, reinforcing the possibility of further moderation if growth slows. At the same time, geopolitical risks, particularly ongoing tensions in the Middle East, along with elevated energy prices, continue to add uncertainty. Higher oil prices may place renewed upward pressure on inflation while weighing on consumer spending, complicating the policy outlook and raising the risk of a more challenging combination of slower growth and persistent price pressures. Despite these headwinds, private-sector investment remains a key source of resilience. Continued capital deployment in technology, artificial intelligence, and productivity-enhancing infrastructure may help offset cyclical pressures. Strong corporate balance sheets, coupled with ongoing innovation, should provide support for economic activity even as financial conditions remain relatively tight and global risks persist. Bottom line: The U.S. economy remains on stable footing, but growth has moderated, and uncertainty remains elevated. In this environment, a focus on high-quality investments, companies with strong balance sheets, consistent cash flows, and durable pricing power remains a prudent strategy for navigating slower growth, evolving policy dynamics, and geopolitical risk. 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. EXPERT CONTRIBUTOR Economic Update FOR JUNE U.S. Economic Outlook: Moderating Growth, Persistent Uncertainty