Geopolitical, Political, Monetary and Fiscal Risks Abound as 2024 Closes
Article from MHI Solutions Magazine
As we look to finish out 2024, the number of risks threatening the outlook are numerous. The geopolitical landscape is fraught with conflict risks from Cold War Two tensions and proxy conflicts. Domestically, the run-up to the 2024 presidential election has been divisive and frustrating for many to watch.
Regardless of the outcome, the person who takes the oath of office in January 2025 will have a mess to contend with. U.S. inflation is still too high, the unemployment rate has risen, GDP growth has softened and U.S. federal debt is at a staggering record level well above $36 trillion. Meanwhile, the Fed faces difficult choices ahead as it navigates the timing of interest rate cuts to support U.S. employment and growth without sending inflation higher again.
U.S. fiscal policy and economic challenges ahead are significant, but interest rate cuts in 2025 and 2026 are likely to provide an uplift to U.S. growth, jobs, manufacturing, housing and material handling. We just need to hang in there…
