Wall Street is concerned about an inflation resurgence in 2025
Published On Dec 28, 2024, 10:30 AM
Wall Street is concerned about a potential resurgence of inflation in 2025, driven by rising costs in the services sector and the impact of proposed tariffs under President-elect Trump. Although inflation has moderated recently, it is expected to remain above the Federal Reserve's 2% target, leading to a more cautious approach to interest rate cuts. Economists project core inflation to hit 2.5% in 2025, and there are concerns about retaliatory measures from other countries if tariffs are enacted, which could further stoke inflationary pressures.
Stock Forecasts
SPY
Negative
The projected increase in inflation due to tariffs and economic policies could lead to a tightening of monetary policy by the Federal Reserve, potentially impacting the broader market negatively.
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