The David Lin Report Economic Boom Or Crash Next? Turning Point Reached | Bloomberg’s Anna Wong
Oct 21, 2025
Anna Wong, Chief U.S. Economist at Bloomberg Economics, brings her expertise to discuss the economic outlook for 2026. She shifts from bearish to bullish, citing a recovering labor market and easing trade uncertainties. Anna dives into five growth tailwinds, including the impact of AI and financial conditions. She addresses inflation forecasts and the Fed's dovish stance, while exploring the K-shaped recovery's effects on consumer spending. Tune in for insights on how wealth-driven consumption could sustain growth and what might change her optimistic view.
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Recovery Triggered By Labor Revision
- Anna Wong concludes the U.S. economy has likely entered a recovery after a recessionary trough earlier this year.
- Alternative labor data and benchmark revisions suggest hiring weakness reversed, implying a rebound in activity.
Five Tailwinds Point To Strong 2026
- Wong lists five tailwinds for 2026: easing trade uncertainty, fiscal support, easier financial conditions, AI, and cyclical recovery.
- She quantifies these as sizable growth impulses, with financial conditions alone adding up to about 0.5–1.0 percentage point.
Fed's Dovish Shift Is Central
- Wong finds the Fed's reaction function shifted dovish, effectively tolerating higher inflation around 2.8% rather than 2.0%.
- That dovish tilt is the most important tailwind enabling stronger growth and easier financial conditions.