From Financial Modeling Prep: 2025-02-03 02:20:17

At Barclays’ 2025 Global Macro & Inflation Conference, investors discussed key themes for financial markets. A consensus emerged on U.S. Exceptionalism, with confidence in the economy’s global leadership. Concerns about other economies highlighted the U.S.’s growth potential. However, overcrowded positions in U.S. equities could lead to volatility.

Former President Trump’s policies were a focus, with expectations of inflationary impacts. Tariffs, tax cuts, and immigration policies were seen as drivers of inflation, challenging previous expectations. This shift could lead to increased volatility in equity markets if the Federal Reserve struggles to respond effectively.

Investors also noted a deteriorating U.S. fiscal outlook, with tax cuts expected to increase the deficit and drive up bond yields. While opinions varied on the consequences, higher yields were seen as reflecting market adjustments rather than systemic concerns. This fiscal trajectory could contribute to volatility in equity markets in 2025.



Read more at Financial Modeling Prep:: Insights from Barclays’ 2025 Global Macro & Inflat…