This Northern Trust report, led by Carl R. Tannenbaum, provides an updated outlook on U.S. economic conditions and interest rate trends following the 2024 election.
• Economic Growth: U.S. GDP grew at 2.8% annualized in Q3, driven by strong consumer spending and business investment.
• Inflation Trends: Core inflation remains above target at 3.3%, with additional cooling in shelter prices needed to reach the 2% target.
• you Interest Rate Path: The Fed is expected to slow rate cuts, with policy rates potentially stabilizing at 3.0% by mid-2025.
• Fiscal Impacts: Anticipated higher tariffs and prolonged fiscal imbalances are likely to sustain elevated Treasury yields.
For a comprehensive analysis, access the full report.
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