The nonpartisan Congressional Budget Office (CBO) downgraded its economic growth forecast for 2025, citing President Trump’s tariff policies, immigration restrictions, and tax-spending laws as key factors driving higher inflation and unemployment. While long-term growth is expected to stabilize, near-term challenges will slow consumer spending and increase production costs. The housing market, a critical economic indicator, shows signs of slowing with falling building permits and high inventories, adding to recession risks. Federal Reserve officials acknowledge these economic headwinds as they contemplate upcoming rate cuts.