NEW YORK, Dec. 19, 2024 (GLOBE NEWSWIRE) -- Overall, the U.S. economy in 2025 is poised for moderate growth, continued inflation above the Fed's target, and cautious optimism across financial markets. These forecasts are courtesy of Peter Cardillo, Chief Market Economist for investment bank Spartan Capital Securities, LLC, which has released its 2025 Economic Outlook. Each year, Spartan Capital analyzes prior market performance, macroeconomic trends, and sector data to issue its widely anticipated report to investors, analysts, and the media.
"We expect the economy to grow at a moderate pace of 2.25% - 2.50% in 2025,” explains Cardillo in the report's summary. "Inflation will remain sticky, staying above the Fed's 2% target, which may lead to higher costs of living and potentially restrained consumer confidence and spending.”
"While we express caution entering the New Year, we believe the economic outlook remains stable, as the Fed has avoided a recession,” adds Cardillo.
Despite these challenges, Cardillo sees selective opportunities for investors across key sectors:
Equities are anticipated to face heightened volatility but demonstrate measured growth. While corporate earnings may face pressure early in the year, market sentiment could turn cautiously optimistic as global economic risks stabilize.
Energy markets are expected to see oil prices stabilize at an average of $80 per barrel, driven by increasing demand in emerging markets. Global supply-demand dynamics remain critical, particularly amid ongoing geopolitical factors.
Precious Metals will likely continue to perform strongly in 2025. "Gold prices are forecasted to rise above $3,000 per ounce,” says Cardillo, citing geopolitical instability, investor demand for inflation hedges, and central bank activity as driving forces. Silver is also projected to perform well, targeting $50 per ounce due to growth in industrial applications.
The U.S. dollar remains resilient, with the index trading between 106-108, reflecting geopolitical uncertainties and economic dynamics. While a significant correction remains unlikely, short-term trends may fluctuate based on global developments.
Fixed Income markets will contend with elevated interest rates as central banks maintain restrictive policies to curb inflation. Cardillo anticipates a cautious Fed stance throughout 2025. "We do not foresee the Fed lowering rates in the near term unless a more pronounced slowdown emerges,” he explains.
Spartan Capital's CEO John Lowry echoes the outlook's cautiously optimistic tone: "2025 marks a period of measured resilience for the economy. Inflation remains a challenge, but steady growth, rising investments, and stabilizing volatility point to opportunities across sectors.”
With over 50 years of experience, Cardillo's expert insights into macroeconomic trends, equities, energy, fixed income, and precious metals continue to guide investors, portfolio managers, and financial analysts globally. His commentary frequently appears in leading financial media outlets such as CNBC, Bloomberg, The Wall Street Journal, and Reuters.
About Spartan Capital Securities, LLC
Spartan Capital Securities, LLC is a premier full-service investment banking firm offering a comprehensive range of advisory services to institutional clients and high-net-worth individuals. Known for its expertise in capital raising, strategic advisory, and asset management, Spartan Capital delivers tailored solutions to meet clients' financial goals.
For more information about Spartan Capital Securities, visit www.spartancapital.com.
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