Quarterly Economic Report Q1 2025
Key Takeaways
The SVB Asset Management Economic Report is a quarterly review and outlook on economic and market factors that impact global markets and business health.
01 The FOMC further reduced the fed funds rate in Q4 2024.
The November and December meetings each concluded with rate cuts of 25 basis points.
02 Inflation has been stickier than expected.
Core PCE rose 2.8% year-over-year in November 2024 and the Fed notes it “remains somewhat elevated.”
03 Stable corporate earnings and economic data support market optimism.
Strong demand, solid US economic growth and resilient fundamentals contribute to current tight credit index spreads.
Unemployment is flattening
The unemployment rate was tightly range-bound during the last half of the year and ended at 4.1% in December.


Short-end interest rates rose across the curve
Rates in the US rose 60 to 90 bps since the Fed delivered 100 bps of rate cuts starting in September 2024.
US equities outperform in 2024
Driven by solid economic growth, falling inflation and the AI boom, the S&P 500 gained over 25%.


Sources: Bloomberg and ICE BofA Indices. Indices are unmanaged and cannot be invested in directly. Past performance is not a guarantee of future results. *US Treasuries pertain to on-the-run sovereign 10-year securities.
US bond yields were volatile
Bond yields were shaped by the Fed’s interest rate decisions and monetary policies, as well as inflation and geopolitical tensions.
Read the full Quarterly Economic Report
Written and researched by SVB dedicated professionals



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