Spring 2025 Market Outlook Report

President Trump’s Administration’s trade policies are expected to lead to higher inflation and lower economic growth over the next several years. We have adjusted our economic outlook to reflect the significant tax increase. The risk of a recession has substantially increased. The FRB may delay cutting the FFR until December due to higher inflation. We expect one cut next year. We expect the 10-year Treasury to finish 2025 at 4.5%. Lower economic growth will likely result in lower growth for the S&P 500.

 

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