The Fed’s rate-cutting cycle is likely to be the defining feature of market action in 2025, with the current economic climate of disinflation and growth set to amplify the impact of the Fed’s anticipated rate path. However the relationship between equities and rates is a complicated one, and the effect on earnings and valuations of monetary policy moves, even downward ones, can be varied. Further, outlier factors like geopolitical risk and consumer activity retain the capacity to create unexpected challenges. Here’s how we see the narrative for equities developing in 2025. Presented by @cmegroup: https://www.cmegroup.com/openmarkets.html?utm_source=youtube&utm_medium=paid_social&utm_campaign=quicktake_evergreen&utm_content=thoughtleadership
