With November’s presidential election in the rearview, associated economic uncertainty and market volatility have eased
mildly, and investor optimism has increased to some degree. Inflation inched up in December, due mainly to energy and
food price increases, but is expected to trend back downward in 2025. Forecasters broadly expect 2025 to be a transition
year with a slowly growing economy, but much hinges on the policies of the new Trump administration. Agendas focused
on deregulation and tax cuts, for example, have the potential to encourage growth, while changes to tariffs and
immigration could cause higher inflation. As policies take time to implement, any associated impact is likely delayed until
the second half of the year.
