Market Insights
As we approach the close of the first quarter of 2025, uncertainty around the economy continues to grow. Market turbulence and recession fears have many rethinking their financial strategies.
Here's a look at some of the key concerns weighing on investor's minds:
Market Volatility and Trade Policy Impact:
Over the past several weeks, U.S. markets have seen a bumpy ride. Concerns over recent trade policies have sparked fears of slowing economic growth and higher inflation. The S&P 500 has experienced its largest drop since 2023, with a correction officially underway. 1
Recession Talk:
Indicators such as rising consumer debt and declining confidence have sparked talk of a potential recession. While it's too soon to determine if we're headed for one, being financially prepared for any possibility is always a prudent step.
Federal Reserve Focus:
All of these factors - inflationary pressures, slowing growth fueled by global trade disruptions, and the threat of a coming recession, likely impacted the Federal Reserve's decision this week to hold interest rates steady at 4.25%-4.50% for the second straight meeting. Fed officials also raised their estimate for core inflation by the end of year by .3 percentage points, and reduced their economic growth estimate from 2.1% to 1.7%. 2
Why This Matters To You:
-Review your goals to help ensure your strategy is still aligned with your priorities.
-Adjust for risk levels based on your comfort and current economic conditions.
-Look for opportunities to preserve and grow your wealth, even in challenging markets.
1 Reuters. "Ominous market signals show more trouble could await US stocks." Mar 12 2025.
Accessed March 17, 2025
2 CNBC. "Fed holds interest rates steady, still sees two cuts coming this year." March 19, 2025.
https://www.cnbc.com/2025/03/19/fed-rate-decision-march-2025.html
Accessed March 19, 2025