U.S. sources of growth “narrow” in early days of 2026, UBS says in World Economy News 27/01/2026 Sources of growth in the U.S. economy are “narrow,” while large parts of the country’s output are “weak or contracting,” according to analysts at UBS. In a note, the analysts including Jonathan Pingle and Alan Detmeister argued that the American economy’s outlook from this year to 2028 is heavily reliant on artificial intelligence investment, which has soared recently thanks to enthusiasm around the applications of the nascent technology. But they flagged that the AI investment is concentrated in mega-cap tech companies, which are now facing pressure to begin showing return from these expenditures. The broader stock market has also leaned on upper-income household spending, the analysts added, reflecting depictions of the U.S. economy as becoming increasingly “K-shaped.” In this scenario, the post-pandemic recovery is being driven by wealthier Americans and corporations, while those of lower wages grapple with elevated living costs. Headwinds from President Donald Trump’s sweeping tariffs have also weighed on real incomes, the UBS analysts said. Still, data points have shown that the U.S. economy has remained widely resilient, with the job market marked by low hiring but modest firing, and inflation stable despite hovering above the Federal Reserve’s 2% target level. Trump’s signature budget bill, which was passed last year, is also anticipated to “put a floor” under any expansion, the UBS analysts said. The legislation is particularly expected to fuel a spike in tax refunds, supporting growth. Against this backdrop, the Fed, which slashed borrowing costs multiple times last year to help prop up the employment picture, is seen holding interest rates steady at its upcoming monetary policy meeting this week. The UBS analysts predicted that the Fed would end up slashing rates twice in 2026, bringing the target range for the central bank’s key federal funds rate down to 3% to 3.25%. Source: Investing.com 2026-01-27 hellenicshippingnews... window.___gcfg = {lang: 'en-US'}; (function(w, d, s) { function go(){ var js, fjs = d.getElementsByTagName(s)[0], load = function(url, id) { if (d.getElementById(id)) {return;} js = d.createElement(s); js.src = url; js.id = id; fjs.parentNode.insertBefore(js, fjs); }; load('//connect.facebook.net/en/all.js#xfbml=1', 'fbjssdk'); load('https://apis.google.com/js/plusone.js', 'gplus1js'); load('//platform.twitter.com/widgets.js', 'tweetjs'); } if (w.addEventListener) { w.addEventListener("load", go, false); } else if (w.attachEvent) { w.attachEvent("onload",go); } }(window, document, 'script')); tweet Share