Economic Review December

 Falling interest rates in the United States and political crisis in France

It was an expected rate cut that the FED announced at the end of 2024, but in its speech it mixed in a desire to cut rates less than expected next year. This led to the biggest rise in 10-year yields for 10 years at the time of the announcement, with a jump of 10 basis points.
One of the reasons for this change in language is the possibility of tariff barriers being put in place by the Trump administration. Such a policy would have an impact on inflation, which rose slightly at the end of the year, especially in services. Nevertheless, wage growth is at a three-year low, which will lead the Fed to act in a measured and unhurried manner in 2025.

US 10-year yield (%)

It was an expected rate cut that the FED announced at the end of 2024, but in its speech it mixed in a desire to cut rates less than expected next year. This led to the biggest rise in 10-year yields for 10 years at the time of the announcement, with a jump of 10 basis points.
One of the reasons for this change in language is the possibility of tariff barriers being put in place by the Trump administration. Such a policy would have an impact on inflation, which rose slightly at the end of the year, especially in services. Nevertheless, wage growth is at a three-year low, which will lead the Fed to act in a measured and unhurried manner in 2025.

Main Economic Statistics