Dallas Fed presents Texas Economic Outlook 2025

The Federal Reserve Bank of Dallas presented the Texas Economic Outlook 2025 at the 11th District headquarters. Fed vice president and senior economist Pia Orrenius presented the Dallas Fed’s forecast. In summary, Orrenius said:

• Business leaders are optimistic even as some economists revise their forecasts down
• Progress on inflation has slowed, and markets now expect fewer rate cuts than before
• In Texas, resilient growth is expected to continue in 2025 at about the same pace as in 2024
• Risks to the outlook include tariffs, sharply lower immigration, rollback of federal government spending
• Tailwinds are deregulation, tax cuts and the state’s robust business climate and budget surplus

The Q&A portion was moderated by Donald Bowers, who was recently named Fed vice president and regional executive for Dallas, North Texas, Panhandle, northeast Texas, and northern Louisiana.