Macroeconomic Themes and Trends Analysis February 2025

This document is a report that outlines macroeconomic themes relevant to clients as of February 2025. It discusses the current state of growth, inflation, and interest rates in the U.S. and internationally. The report details that while U.S. growth remains strong, international growth is weaker, particularly in the U.K. and Europe. It notes that U.S. inflation is sticky, with a current core price measure of 2.8% year over year, while inflation in Europe is expected to decrease. The Federal Reserve is anticipated to pause on rate cuts until May 2025, while other central banks, particularly in Europe and China, are expected to continue easing. The report also addresses the implications for fixed income and equities, suggesting that higher-quality bonds are becoming more attractive and that there may be a shift towards international equities. Overall, the document presents a comprehensive analysis of current economic conditions and their potential impacts on various asset classes.