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What investors should watch out for in 2025
Metrobank’s chief economist lays down five predictions based on available data.
By Metrobank
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Before we end the year, we are sharing our key forecasts for 2025. For sure, there are uncertainties, especially with the shift in US politics and ongoing wars in Ukraine and the Middle East.
Amid this backdrop, our analysis presents five key predictions which may affect your investment decisions.
Fed Rate cuts: 25 bps plus 75 bps more
The US Federal Reserve has room to ease monetary policy, even with President-elect Donald Trump’s return in January. Looking at the numbers, US inflation has moderated significantly towards the Fed’s 2% target while job creation has slowed considerably.
Expect 25 basis points of cuts before the year ends and another 75 basis points in total for 2025, though we may see a more measured pace due to the potential inflationary effects of Trump’s policies.
Inflati