In 2025, market volatility is expected to persist, influenced by factors such as tariffs, tax cut extensions, inflation, and Federal Reserve interest rate decisions. Recent economic indicators, including a drop in unemployment and fluctuating inflation rates, have led to market sell-offs and rallies. The potential reintroduction of tariffs could increase consumer prices, complicating the Fed's ability to lower interest rates. Additionally, the expiration of 2017 tax cuts may impact households and corporations unless extended. Overall, investors should prepare for an unpredictable year ahead.
Continue to full article