What will 2025 hold?

With 2024 coming to a close, I want to share my thoughts on America's current fiscal policy, geopolitical elements, and other factors that may help shape 2025's financial landscape. This transition period offers both challenges and opportunities for investors—and we're here to help.

Fiscal Policy
Many provisions of the 2017 Tax Cuts and Jobs Act were set to expire in 2025, but it's possible some of those provisions may get extended due to the election's outcome. So remain proactive, especially with estate strategies, but expect some updates as 2025 progresses. Reducing the corporate tax rate appears most likely among the discussed tax reforms. Whether these measures will successfully pass through Congress remains to be seen.¹

Monetary Policy
When discussing monetary policy, all eyes shift to the Fed and what it will do with interest rates. At its December meeting, the Fed cut rates but indicated it may make fewer adjustments in 2025. The anticipated changes under the new administration will most likely leave the current trajectory of economic and monetary policy unchanged over the next few years.²

Geopolitical Factors
The global landscape remains fraught with uncertainty due to continuing conflicts, governance transitions, and economic debates. These factors keep the global stage unpredictable, underscoring the importance of vigilance in considering how they might impact both international and domestic investments.³

As these factors continue to take shape, we're here to help. Please don't hesitate to contact us if you have any questions or just want to chat about what else 2025 may hold.

<sup>1. Russellinvestments.com, December 4, 2024. "An investor's guide to potential U.S. policy changes in 2025."
2. Goldmansachs.com, 2024. "The US economy is poised to beat expectations in 2025."
3. Invesco.com, December 17, 2024. "Fiscal conservatism and other global economic themes for 2025"</sup>