What to Expect in the 2025 Mid-Year Outlook on Global Economics and Markets
As European central banks pivot toward easing measures, the Federal Reserve remains cautious about its next moves. The debt-to-GDP ratios in the US and UK have now exceeded 100 percent. This alarming trend prompted Moody’s to downgrade the credit rating of US Treasuries. Consequently, we observe significant steepening in yield curves along with a weaker value of the US dollar. Investors are left to ponder over the implications of these shifts on their portfolios and the broader market. Risk tolerance may need to be reassessed in light of these economic indicators. The upcoming months will likely present challenges as economic conditions evolve, emphasizing the need for strategic planning.