{"id":2525100,"date":"2025-12-26T05:17:02","date_gmt":"2025-12-26T10:17:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/the-top-economic-policy-stories-of-2025-that-will-shape-the-years-to-come\/"},"modified":"2025-12-26T05:19:09","modified_gmt":"2025-12-26T10:19:09","slug":"the-top-economic-policy-stories-of-2025-that-will-shape-the-years-to-come","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/the-top-economic-policy-stories-of-2025-that-will-shape-the-years-to-come\/","title":{"rendered":"The top economic policy stories of 2025 that will shape the years to come"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">28<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fthe-top-economic-policy-stories-of-2025-that-will-shape-the-years-to-come%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2525100&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>In 2025, several major economic policy moves under President Trump&#8217;s second term are shaping the outlook for U.S. families and businesses.The centerpiece was the One Big Beautiful Bill Act &#8211; rebranded as the working families tax cut &#8211; which permanently extended prior Trump-era tax cuts and added business-amiable provisions like immediate deduction of domestic R&#038;D and full expensing for new capital investment, alongside new individual measures (no taxes on tips, overtime tax cuts, <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/trump-announces-auto-loan-interest-deductions-for-american-made-cars-washington-examiner\/\" title=\"... announces auto loan interest deductions for American-made cars - Washington Examiner\">auto loan interest deductions<\/a>). Critics warn those tax cuts add to deficits even as Republicans argue thay will spur business investment and growth. The administration also implemented sweeping tariffs aimed at reshoring manufacturing and altering trade patterns; those measures have been modified with exclusions,face a Supreme Court challenge,and so far appear to have had a smaller inflationary effect than some feared. Inflation remained above the Fed&#8217;s 2% target &#8211; closer to 3% for much of the year &#8211; forcing the central bank to balance price stability against a softening labor market and slower hiring. households continue to feel the strain of high prices even as policymakers pursue tax, trade, and regulatory changes intended to boost growth.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<p><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><\/p>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-mobile-menu-button\"><i class=\"tdb-mobile-menu-icon td-icon-mobile\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-header-search-button-mob dropdown-toggle\" data-toggle=\"dropdown\"><i class=\"tdb-mobile-search-icon td-icon-search\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-mobile-menu-button\"><i class=\"tdb-mobile-menu-icon td-icon-mobile\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<div class=\"tdb-drop-down-search\" aria-labelledby=\"td-header-search-button\">\n<div class=\"tdb-drop-down-search-inner\">\n<form method=\"get\" class=\"tdb-search-form\" action=\"https:\/\/www.washingtonexaminer.com\/\"><\/form>\n<div class=\"tdb-aj-search\"><\/div>\n<\/div>\n<\/div>\n<p><a href=\"http:\/\/www.washingtonexaminer.com\/#\" role=\"button\" aria-label=\"Search\" class=\"tdb-head-search-btn dropdown-toggle\" data-toggle=\"dropdown\"><i class=\"tdb-search-icon td-icon-search\"><\/i><\/a><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<h1 class=\"tdb-title-text\">The top economic policy developments of 2025 that will shape the years to come<\/h1>\n<div><\/div>\n<div class=\"tdb-title-line\"><\/div>\n<\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<div id=\"Brid_2415603\" class=\"tpd-featured-video bridtv\"><\/div>\n<p>From the passage of landmark tax legislation to President <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/donald-trump\/\">Donald Trump<\/a>&lsquo;s sweeping <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/tariffs\/\">tariff<\/a> agenda, 2025 featured changes to economic policy that will have major implications for American families and businesses for years.<\/p>\n<p>Trump won the <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/2024-election\/\">2024 presidential election<\/a> in large part because of voter dissatisfaction with the inflation that plagued the country for much of former President Joe Biden&rsquo;s time in office.<\/p>\n<div class=\"recommended-stories\">\n<h2>Recommended Stories<\/h2>\n<ul>\n<li><a href=\"https:\/\/www.washingtonexaminer.com\/news\/3917838\/house-lawmakers-reflect-memorable-moments-congress\/\">House lawmakers reflect on their memorable moments in Congress<\/a><\/li>\n<li><a href=\"https:\/\/www.washingtonexaminer.com\/news\/4362011\/new-storm-california-could-bring-mudslides-and-high-surf\/\">New storm hitting waterlogged Southern California could bring mudslides and high surf<\/a><\/li>\n<li><a href=\"https:\/\/www.washingtonexaminer.com\/news\/4362000\/cheapest-gas-prices-at-christmas-since-2020\/\">Cheapest national average price for regular gas at Christmas since 2020<\/a><\/li>\n<\/ul>\n<\/div>\n<div class=\"article-paywall\">\n<p><strong><a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/policy\/finance-and-economy\/3915580\/french-hill-bipartisan-housing-bill-supply-affordability\/\">TOP REPUBLICAN UNVEILS BIPARTISAN HOUSING BILL TO BOOST SUPPLY AND AID AFFORDABILITY<\/a><\/strong><\/p>\n<p>Now, nearly a year into Trump&rsquo;s second term, households are still struggling with high prices, and the Federal Reserve is trying to finally contain the fallout from the inflation wave that cascaded through the economy as the pandemic came to an end.<\/p>\n<h2 class=\"wp-block-heading\" id=\"h-the-one-big-beautiful-bill-act\">The One Big Beautiful Bill Act<\/h2>\n<p>The president&rsquo;s biggest legislative achievement of his second term so far is the passage of the One Big Beautiful Bill Act, which the White House has <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/news\/campaigns\/congressional\/3792446\/republicans-embrace-white-house-nudge-rename-big-beautiful-bill-2026\/\">worked to rebrand<\/a>&nbsp;as the&nbsp;working&nbsp;families&nbsp;tax&nbsp;cut.<\/p>\n<p>The landmark GOP legislation, signed into law by Trump on the Fourth of July, permanently extended tax cuts enacted by Trump and Republicans during his first term, which were set to expire, while also implementing new tax breaks and funding immigration enforcement.<\/p>\n<p>A provision that could have major ramifications for the economy bill permanently allows companies to <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/how-the-senate-gop-tax-plan-differs-from-the-house-bill\/\" title=\"How the Senate GOP ... plan differs from the House ...\">immediately deduct domestic research<\/a> and development costs. The bill also permanently allows full expensing for new capital investment, such as factory machinery. <\/p>\n<p>These business provisions were a priority for lawmakers because incentives for businesses are thought to be especially helpful in boosting economic growth. Republicans hope that businesses will accelerate spending on plants, machinery, software, and much more. In theory, higher business investment could yield greater tax revenues in the years ahead, offsetting the cost to the treasury of the tax cuts.<\/p>\n<p>&ldquo;That does simplify things a little bit,&rdquo; Stephen Kates, a financial analyst at Bankrate, told the <em>Washington Examiner<\/em>. &ldquo;I think there was concerns from the business community and from individual taxpayers that it&rsquo;s just a pain to update tax law and figure out what the new things are. So this provides some consistency.&rdquo;<\/p>\n<p>Still, on paper, the tax cuts add to deficits. With the national debt headed to record levels, some deficit hawks are worried about the fiscal health of the government. <\/p>\n<p>The legislation also fulfills some of Trump&rsquo;s campaign promises, such as no taxes on tips. It cuts taxes on overtime pay and allows up to $10,000 in deductions for <a href=\"https:\/\/amzn.to\/3YuVZYV\" >auto loan interest paid<\/a>. <\/p>\n<h2 class=\"wp-block-heading\" id=\"h-tariffs\">Tariffs<\/h2>\n<p>Trump campaigned on imposing sweeping tariffs, arguing that they are necessary to reshore domestic manufacturing, reduce reliance on foreign supply chains, and address trade imbalances. Many economists have panned the tariffs as a tax on consumers, and they are facing a challenge in the Supreme Court.<\/p>\n<p>The tariffs, which largely took effect earlier this year on what the White House dubbed &ldquo;Liberation Day,&rdquo; affect trade worldwide.<\/p>\n<p>The tariff policy, though, has undergone significant change as deals with other countries were inked, and investors and businesses have faced uncertainty about what changes might come down the line.<\/p>\n<p>For instance, the Supreme Court already heard oral arguments on Trump&rsquo;s use of the International Emergency Economic Powers Act to impose tariffs. Some analysts predict that the high court will strike those down, although the White House has said they will be able to <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/news\/3906438\/trump-projects-confidence-tariffs-no-matter-what-supreme-court\/\">recreate them using other means<\/a> if that does occur.<\/p>\n<p>There were major concerns from some that the tariffs would further exacerbate inflation, which is still running over the Fed&rsquo;s 2% level. Still, the inflationary impact has not been as profound as some economists had predicted earlier this year.<\/p>\n<p>&ldquo;In terms of what has flowed through to inflation and prices, it has been lesser than expected,&rdquo; Kates said. &ldquo;Now, I will say that what was expected at the time that it was announced was quite hyperbolic.&rdquo;<\/p>\n<p>Kates pointed out the many changes that the tariffs have undergone and how that further complicates the economic picture.<\/p>\n<p>&ldquo;Some were pared back, some had exclusions applied, there were a lot of changes that went that went into place,&rdquo; he said. &ldquo;So the tariffs we have today are very different than the tariffs that were announced.&rdquo;<\/p>\n<h2 class=\"wp-block-heading\" id=\"h-inflation-and-the-fed\">Inflation and the Fed<\/h2>\n<p>Inflation was still a lingering concern throughout 2025.<\/p>\n<p>While inflation has declined from the multi-decade highs reached under the Biden administration, price growth has yet to return to levels that the Fed considers healthy.<\/p>\n<p>The Fed targets 2% inflation. For most of the year, though, inflation has been running closer to 3%. <\/p>\n<p>The Fed is attempting to balance its dual mandate &mdash; price stability and maximum employment. Inflation remains too high, but there are recent signs that the labor market is softening meaningfully.<\/p>\n<p>In particular, hiring has slowed to rates below the pre-pandemic norm.<\/p>\n<p><strong><a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/news\/3904915\/new-trump-fed-chair-quick-drop-mortgage-rates\/\">NEW TRUMP FED CHAIR WON&rsquo;T MEAN QUICK DROP IN MORTGAGE RATES<\/a><\/strong><\/p>\n<p>So, which side of the mandate to prioritize is a central tension.<\/p>\n<p>&ldquo;Inflation isn&rsquo;t out of control and the employment situation is not tanking, but they&rsquo;re having to basically prioritize one or the other, and that&rsquo;s the question on which the committee is split,&rdquo; Dennis&nbsp;Lockhart, former president of the Federal Reserve Bank of Atlanta, recently told the&nbsp;<em>Washington Examiner<\/em>.<\/p>\n<\/div>\n<\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>2025 US tax, tariff and Fed policy shifts<\/p>\n","protected":false},"author":3360,"featured_media":2525101,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2025\/12\/AP25288650264644.jpg?w=696","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[63954,34402,38510,51509,38541],"class_list":["post-2525100","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","tag-2025-outlook","tag-economic-policy","tag-fiscal-policy","tag-global-economy","tag-monetary-policy"],"fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2025\/12\/AP25288650264644.jpg?w=696","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2525100","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/3360"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2525100"}],"version-history":[{"count":3,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2525100\/revisions"}],"predecessor-version":[{"id":2525104,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2525100\/revisions\/2525104"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2525101"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2525100"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2525100"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2525100"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}