Economic and Market Outlooks Insights

After turning the page on an action-packed 2024, here are five questions on our minds as we ponder the potential paths forward for 2025. These questions are intentionally provocative but are an important exercise in thought as we prepare to navigate a multitude of risks, opportunities, and surprises that are in store for us over the next 12 months.

In 2025, strong consumer spending backed by a healthy labor market should continue to power U.S. economic growth, which is poised to continue to outpace other global economies. A broadening in U.S. equity markets should allow small- and mid-cap names to catch up to the performance of the technology giants, while bond markets may need to brace for some volatility amid a cautious easing campaign.

Our December 2024 Economic & Market Outlook analyzes the market implications of Trump’s re-election, including his policy agenda and cabinet appointments. We explore inflation trends, labor market conditions, and equity market performance as the U.S. economy shows continued resilience heading into 2025.

Explore our latest commentary on the recent economic slowdown and its implications. Despite weaker employment reports and market volatility, we analyze why this may not signal the start of a recession. Learn about the Federal Reserve’s potential rate cuts and other contributing factors.