Quarterly Economic Report
Q2 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 held interest rates steady in January and March 2025.
The committee will have a patient approach regarding policy easing going forward.
02 Uncertainty around tariffs caused inflation concerns.
The administration’s policies on tariffs and federal spending cuts affected inflation expectations and consumer behavior.
03 The market experienced volatility in reaction to new policies.
The US equity sector had sharp reversals, while bonds delivered strong returns in Q1 2025.
The job market remains solid.
The unemployment rate was little changed in March at 4.2%. Labor market conditions are “broadly in balance.”
US GDP grew at an annual rate of 2.4% in Q4 2024.
GDP estimates exceeded expectations at the end of 2024. It is unclear how policy changes will affect economic growth this year.
Inflation flattened at the start of 2025.
The Fed reiterated that it expects inflation to decline, although this may change based on tariffs.
Some market sectors faced sharp corrections in Q1 2025.
US equities faced declines, especially tech and biotech, while bond markets posted solid gains.
Written and researched by SVB dedicated professionals
