Update Data Release Summary of Economic Projections March 19, 2025
GDP and Unemployment are projected to decline. This indicates that the US economy is experiencing a slowdown.
On one hand, Inflation is projected to rise further in 2025 due to the effects of tariff wars initiated by Donald Trump. All industries will experience price increases as a result of the tariffs imposed by Donald Trump.
This is actually quite detrimental for risk assets; the current increase in the market is due to Jerome Powell (The FED) mentioning the end of QT (Quantitative Tightening), so, as a result, the market still concludes that this is still Bullish. (Not lasting due to uncertainty in the US economy).
Quotes from The FED that have caused the market to react bullishly at this moment:
📌 Fed says it will slow the pace of balance sheet drawdown next month
📌 Fed shift comes amid less clarity over money market conditions
📌 No sign yet Fed ready to end quantitative tightening