2025 Industry and Economic Trends Report

Electric Cooperative Network Well Prepared To Overcome Economic and Policy Uncertainty

Our nation’s economic performance defied expectations, yet again, in 2024, with stronger-than-expected economic growth as consumers and corporates shrugged off the higher-for-longer interest rate environment and inflation continued to moderate. 

The strong economic fundamentals that drove the U.S. economy in 2024 provide a solid foundation for continued economic growth and low unemployment in 2025 as the Federal Reserve works to tame inflation to its 2% target. Inflation expectations continue to be elevated and could push the Fed to delay rate cuts until inflation eases further or unemployment begins to increase. 

The labor market continues to be very tight and labor participation strong. These two dynamics will put pressure on wages that could drive costs higher.

Persistently high inflation is the biggest risk factor in 2025 for the U.S. economy. If inflation were to increase this year, the Fed may be forced to raise short-term rates instead of cutting them as the market has predicted. 

The second biggest risk is policy changes implemented by the new administration. Until we see the actual policies, we will not know for sure the impact they will have on economic growth, inflation and the Fed’s plan for rates. 

While there is a great deal of economic and policy uncertainty, the electric cooperative network continues to be fiscally well managed and prepared to meet these challenges.

CFC is well positioned to meet our members' demand for capital as they rebuild from last year's hurricanes, invest in new technologies to enhance reliability and resiliency, and expand access to high-speed internet. 

Explore the 2025 Industry and Economic Trends Report