WASHINGTON (AP) — President Donald Trump’s tariff policy, immigration crackdowns and sweeping tax and spending law are expected to increase jobless rates and inflation and lower overall growth this year before they improve next year, according to a new report from the nonpartisan Congressional Budget Office.
The CBO on Friday released new economic projections for the next three years, updating the outlook it originally released in January, before Trump's inauguration.
The latest figures, which compare fourth quarter changes, show the unemployment rate, inflation and overall growth are expected to be worse this year than initially projected, while the economic picture is expected to steady in subsequent years.
The CBO outlooks attempt to set expectations for the economy in order to help choices made by congressional and executive branch policymakers. It does not forecast economic downturns or recessions, with its estimates generally reverting back to an expected average over time.
But Friday’s outlook showed the degree to which Trump’s choices are altering the path of the U.S. economy, suggesting that growth has been hampered in the near term by choices that have yet to show the promised upside of more jobs and lower budget deficits.
Kush Desai, a White House spokesperson, told The Associated Press, “Americans heard similar doom-and-gloom forecasts during President Trump’s first term, when the President’s economic agenda unleashed historic job, wage, and economic growth and the first decline in wealth inequality in decades.”
“These same policies of tax cuts, tariffs, deregulation, and energy abundance are set to deliver — and prove the forecasters wrong — again in President Trump’s second term,” he said.
Overall, the CBO expects real GDP growth to decrease from 2.5% in 2024 to 1.4% this year, a downgrade from the initial projection of 1.9%. The CBO attributes the projected decline to a slowdown in consumer spending stemming from new tariffs and a decrease in immigration, which would also impact consumer spending.
The tariffs “raise prices for consumer goods and services, thereby eroding the purchasing power of households; they also increase costs for businesses that use imported and import-competing inputs in production,” the report says.
However, GDP is set to grow to 2.2% in 2026, which is higher than the CBO's January prediction of 1.8%. GDP would then level off to 1.8% in 2027 and 2028, the CBO says in its latest report.
Additionally, unemployment is expected to hit 4.5% in 2025, higher than the 4.3% initially expected, according to the CBO. The jobless rate is expected to reach 4.2% in 2026 — slightly lower than the 4.4% originally anticipated — and even out at 4.4% in 2027 and 2028.
And inflation is now expected to hit 3.1% for the rest of 2025, according to the CBO, up from its 2.2% projection in January. Inflation would then lower to 2.4% in 2026, higher than the initial expectation of 2.1%, before leveling off at 2% the next two years.
The CBO on Wednesday issued a report that shows Trump’s plans for mass deportations and other hard-line immigration measures will result in roughly 320,000 people removed from the United States over the next ten years.
Coupled with a lower fertility rate in the U.S., the reduction in immigration means that the CBO’s projection of the U.S. population will be 4.5 million people lower by 2035 than the nonpartisan office had projected in January.
Associated Press writer Josh Boak in New York contributed to this report.
The west front of the Capitol is seen in Washington, Thursday, Sept. 11, 2025, where the flags have been lowered to half-staff after the assassination of conservative activist Charlie Kirk. (AP Photo/J. Scott Applewhite)
MCLEAN, Va.--(BUSINESS WIRE)--Jan 15, 2026--
Hilton (NYSE: HLT) today announced Apartment Collection by Hilton, a new lodging category within Hilton's growing collection brand portfolio – offering unique, spacious furnished apartments with the trusted hospitality and reliability guests expect from Hilton. Apartment Collection by Hilton will be available for booking through Hilton channels in the first half of 2026, with initial properties in the U.S. launched in partnership with Placemakr—a leading apartment hospitality brand and operator specializing in flexible, short-term and extended-stay accommodations in urban and suburban markets, with nearly a decade of experience integrating innovative hospitality solutions and trusted service.
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260115804669/en/
The launch of Apartment Collection by Hilton allows the company to build on its existing global inventory of approximately 10,000 apartment-style units, adding as many as 3,000 new units through its partnership with Placemakr. Hilton expects to significantly grow its apartment-style inventory over the next few years through this new partnership and through additional franchise agreements with new owners in the multi-family segment.
Designed to provide flexibility for guests to stay their way, Apartment Collection by Hilton offers studio to four-bedroom furnished apartments for a variety of stay occasions — from a family getaway or friends’ reunion to an extended work trip where business travelers need comfort and consistency. Featuring chef-ready kitchens, spacious separate living areas, and on-site laundry, each distinct property is located in the heart of sought-after destinations – offering guests easy access to both must-go-to destinations and unique, under-the-radar gems. Each stay delivers an elevated experience that captures the local character of its surroundings, with the convenience and smart amenities of apartment-style living. Guests will be thoughtfully hosted, with dedicated team members available on-site 24/7 to provide support and ensure guests feel cared for.
To bring this vision to life, Hilton is launching this brand in partnership with Placemakr—a leading brand and management company in the furnished and unfurnished apartment sectors. Placemakr’s proven operational model brings deep multi-family expertise to launch Hilton’s growth in this expanding segment. Placemakr has leveraged organic growth and asset-light management agreements with its business model and is centered on partnering with multi-family building owners to convert either an entire building or a subset of units in an apartment building into furnished short-term rentals. Through the partnership with Placemakr, as well as with relationships with multi-family owners, Hilton expects to see strong growth for the brand, given the popularity of the apartment-style hospitality market.
“Apartment Collection by Hilton represents the next chapter in Hilton’s growth story and the ways we are evolving to meet growing guest demand for this dynamic segment of hospitality,” said Chris Nassetta, president and CEO, Hilton. “With this new brand, we are continuing to pioneer the future of the hospitality industry, giving guests even more ways to choose Hilton for every stay, backed by our service and reliability.”
Powered by Hilton’s trusted brand standards, Apartment Collection by Hilton will maintain consistent quality across every property, with every stay integrated into Hilton’s booking and loyalty systems, ensuring reliability and peace of mind for guests and owners alike. In the first half of 2026, travelers will be able to book stays via Hilton.com at Apartment Collection by Hilton in destinations including New York City, Washington, D.C. and Atlanta.
“After an extensive search, Hilton is proud to partner with Placemakr to introduce Hilton’s new lodging category,” said Chris Silcock, president, global brands and commercial services, Hilton. “We’ve long seen the opportunity to deliver hospitality-driven apartment stays, offering spacious accommodations, thoughtful amenities, and authentic connections to local neighborhoods, and Placemakr shares that vision. For nearly a decade, they’ve demonstrated a strong commitment to guests through high product standards and exceptional service.”
Each Apartment Collection by Hilton property will be thoughtfully designed to support guests’ routines and provide flexible spaces for real life. Guests will also enjoy access to fitness centers and select properties may also feature rooftop pools and terraces, communal gathering and workspaces, and on-site dining and retail.
“Placemakr is proud to bring our deep expertise in the furnished apartment space to this innovative new brand with Hilton,” said Bao Vuong, co-founder and president, Placemakr. “We’re thrilled for Hilton guests and Hilton Honors members to experience what we’ve built over the past decade. We’ve pioneered the furnished apartments asset class property by property, stay by stay, and to continue that work alongside the world’s most valuable hotel brand is so exciting.”
“We’re also excited for what this means for our real estate partners,” added Jason Fudin, co-founder and CEO, Placemakr. “Hilton’s industry-leading commercial engine and scale will help create even more value for our partners while accelerating our mission to maximize the value of real estate through flexibility. This marks a new chapter in flexible real estate, and we couldn’t be more excited.”
Apartment Collection by Hilton will participate in Hilton Honors, the award-winning guest loyalty program with more than 235 million members for Hilton’s portfolio of world-class brands. Members will be able to book, earn and redeem Hilton Honors Points for stays through Hilton’s direct channels and have access to instant benefits, including exclusive member discounts and free standard Wi-Fi.
PJT Partners and Goldman Sachs & Co. LLC were the strategic financial advisors on this partnership for Hilton and Placemakr, respectively.
For more information, visit Stories From Hilton.
About Hilton
Hilton (NYSE: HLT) is a leading global hospitality company with a portfolio of 26 world-class brands comprising 9,000 properties and over 1.3 million rooms, in 141 countries and territories. Dedicated to fulfilling its founding vision to fill the earth with the light and warmth of hospitality, Hilton has welcomed over 3 billion guests in its more than 100-year history, was named the No. 1 World’s Best Workplace by Great Place to Work and Fortune and has been recognized as a global leader on the Dow Jones Sustainability Indices. Hilton has introduced industry-leading technology enhancements to improve the guest experience, including Digital Key Share, automated complimentary room upgrades and the ability to book confirmed connecting rooms. Through the award-winning guest loyalty program Hilton Honors, the more than 235 million Hilton Honors members who book directly with Hilton can earn Points for hotel stays and experiences money can't buy. With the free Hilton Honors app, guests can book their stay, select their room, check in, unlock their door with a Digital Key and check out, all from their smartphone. Visit stories.hilton.com for more information, and connect with Hilton on Facebook,X, LinkedIn,Instagram and YouTube.
About Placemakr
Placemakr is a hospitality brand and management company focused on the furnished apartment space. The company transforms multifamily properties into a unique blend of apartment living and hospitality and has been the pioneer of the flexible living asset class. Placemakr's innovative tech-enabled platform provides an unmatched experience for its guests and residents, combining the advantages of apartment living with the services and reliability of a hotel, all within a single building. Placemakr's thoughtfully curated spaces in carefully selected neighborhoods offer guests and residents the flexibility to stay for a night, a year, or any duration in between.
Hilton Introduces Apartment Collection by Hilton: Furnished Apartment Accommodations, Hosted by Hilton
