Q1 2025 outlook: inflation pressures will rise, Fed prone to cease chopping charges earlier

The S&P International Scores outlook for the primary quarter of 2025 is titled “Buckle Up”.

Key factors made within the report:

• Even earlier than taking workplace, a second Trump administration is already transferring the macro-financial needle and elevating draw back dangers for the worldwide economic system. The diploma of final coverage implementation is a key unknown.
• Our preliminary coverage learn on the brand new U.S. administration is that constructive progress results will probably be minimal, inflation pressures will rise, and the Fed is prone to cease chopping charges earlier. This may result in tighter monetary circumstances, a stronger greenback, and a extra sophisticated macroeconomic image elsewhere.
• Owing to a “wait and see” method, our GDP progress forecasts haven’t moved a lot for the reason that earlier publication, aside from incorporating adjustments associated to base results.
• Dangers embrace the complete implementation of the proposed U.S. agenda on taxes, commerce, and immigration; the tip of resilient client spending and labor demand; and bond market stress. AI is an upside.

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Right here is the hyperlink to the piece:

• Economic Research: Global Economic Outlook Q1 2025: Buckle Up
  

This text was written by Aaron Cutchburt at www.ubaidahsan.com.



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