Income tax cuts, AI infrastructure expansion and moderating tariff pressures shift risks from labor market cooling toward potential overheating
LOS ANGELES, March 4, 2026 /PRNewswire/ — The spring 2026 UCLA Anderson Forecast for the United States and California signals a meaningful shift in economic momentum since late 2025. In December 2025, the Forecast anticipated an economy “muddling through” amid tariff shocks and labor market stagnation. Three months later, the balance of risks has shifted toward reacceleration in 2026, fueled by income tax cuts, expansion of fiscal stimulus and sustained artificial intelligence investment.
(PRNewsfoto/UCLA Anderson Forecast)
While aggregate indicators point toward stronger growth, the Forecast also highlights continued structural imbalances. Nationally, productivity gains and capital spending remain strong, even as segments of…
