US to sustain its leading-edge role in global growth during 2025: Wells Fargo By Investing.com

Investing.com – The United States is set to maintain its leading role in global economic growth throughout 2025, Wells Fargo said in a recent note.

Analysts at the bank predicted steady and more balanced growth across sectors, supporting an improvement in conditions in previously weak sectors of the economy.

Wells Fargo (NYSE:) highlights several factors driving this momentum: Lower borrowing costs and early-year inflation are expected to boost real wage growth, particularly benefiting lower-income households.

In addition, the bank says manufacturing should gain strength from more balanced spending on goods and services.

“Easier access to credit and deregulation should help struggling small businesses and support job creation,” the bank wrote.

Despite this optimism, Wells Fargo acknowledges uncertainties surrounding President-elect Donald Trump’s proposed policies, including rate hikes and tightening immigration controls.

Analysts expect announcements early in the year, but warn that the policies could “weak economic growth until early 2026” and exacerbate inflationary pressures in the second half of 2025, depending on their timing and scope.

Wells Fargo’s economic outlook is based on a strong belief in diversified investment strategies that favor U.S. assets. :

For fixed income, Wells Fargo says it prefers intermediate (3-7 years) and longer maturities as yields rise.In addition, the bank emphasizes the importance of maintaining exposure to commodities, which it views as a hedge against inflation under tight supply-demand conditions.