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Eric Siu breaks down why 2025 won't be a blockbuster year for most companies. Interest rates will stay materially higher than the near-zero era, with the Fed expecting only two cuts and SOFR dropping from 4.4-4.5% to around 3.9-4.0%.
Eric Siu breaks down why 2025 won't be a blockbuster year for most companies. Interest rates will stay materially higher than the near-zero era, with the Fed expecting only two cuts and SOFR dropping from 4.4-4.5% to around 3.9-4.0%.
2025 will not be a blockbuster year for most companies. Everyone believes that, hey, things are going to be great. New election, things are going to boom like they did. People forget a few things. We're used to rates being extremely low. They're not going to go that low. The Fed is predicting that we're going to have 2 cuts in 2025. So the SOFR rate is going to go from roughly 4.4 to 4.5, roughly where it's at right now, to roughly 3.9 to 4.0. During the Obama years and for a lot of the Trump years, we're to interest rates at zero or close to zero, which made everything cheap.
