This report highlights key themes for municipal bonds and their potential for attractive returns in 2025 amidst economic and fiscal policy shifts.
• Higher-for-Longer Rates: Persistent inflation and resilient economic data reduce the likelihood of significant Fed rate cuts this year.
• Municipal Bond Strength: High-yield municipals gained +6.6% in 2024; attractive valuations and robust credit fundamentals support continued performance.
• Policy Impact: U.S. tax cuts, tariffs, and deregulation may elevate inflation risks, impacting broader markets while favoring tax-exempt municipal bonds.
For actionable insights into leveraging municipal bonds in your portfolio, access the full report.
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