Summer 2025 Market Outlook Report

Anticipated average tariff rates are lower, leading to faster growth. Lower energy costs will help tamp down inflation, offsetting some of the negative impact of the tariffs. We expect two rate cuts this year, followed by one additional cut next year. We expect the 10-year Treasury to finish 2025 at 4.5%. Inflation, economic growth, and interest rates are expected to remain near neutral levels next year. Next year promises to be a reasonably balanced year economically.

 

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