"Aside from the ongoing geopolitical turmoil we've seen, as well as concerns around inflation driven by quickly-changing tariff and trade policies, the direction of monetary policy coming out of the Federal Reserve could be the hot topic many will be watching very closely. Given president Trump's views on interest rates (namely, that they're way too high right now), a pressure campaign is still being waged on the Fed to drop rates, and do so quickly."
"With three consecutive 25 basis point (0.25%) interest rate cuts from the Federal Reserve to end fiscal 2025, plenty of investors may be looking at interest rate-sensitive areas of the economy to put some capital to work in, come the New Year. It think construction-related companies could be among the biggest beneficiaries of this trend. Indeed, home sales continue to slow, as prices remain high (but look to be coming down in some key metropolitan markets across the country)."
Macro dynamics entering the new year include geopolitical turmoil, tariff- and trade-driven inflation concerns, and pressure on the Federal Reserve regarding interest rates. Political pressure seeks quicker rate reductions, but broader economic outcomes will likely influence Fed decisions. The labor market is weakening rapidly and will likely shape monetary policy moves. Forecasted rate cuts at the end of fiscal 2025 could prompt investors toward interest rate-sensitive sectors. The construction sector could be a major beneficiary as home sales slow and prices remain high, with lower rates needed to bring buyers back.
Read at 24/7 Wall St.
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