Macro Matters: Ahead: How Long Will the Fed Hold Last?
Macro Matters provides a concise, comprehensive look at macroeconomic themes that matter to clients.

Key takeaways
- U.S. growth remains strong although a stronger U.S. dollar and higher real yields may dampen growth as 2025 progresses. Internationally, the growth picture is less favorable.
- While inflation is still sticky in the U.S., we expect to see lower inflation ahead in Europe—perhaps dipping below 2% in the eurozone. China’s inflation remains negative.
- We expect the Fed to hold on more rate cuts in the first quarter and perhaps the second. Internationally, Europe and China will need to continue reasonably aggressive easing.
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