With 2025 in full swing, let's take a look at America's current fiscal policy, geopolitical elements, and other factors that may help shape 2025's financial landscape.
Fiscal Policy
Many provisions of the 2017 Tax Cuts and Jobs Act were set to expire in 2025, but it's possible some of those provisions may get extended due to the election's outcome. So remain proactive, especially with estate strategies, but expect some updates as 2025 progresses. Reducing the corporate tax rate appears most likely among the discussed tax reforms. Whether these measures will successfully pass through Congress remains to be seen.1
Monetary Policy
When discussing monetary policy, all eyes shift to the Fed and what it will do with interest rates. At its December meeting, the Fed cut rates but indicated it may make fewer adjustments in 2025. The anticipated changes under the new administration will most likely leave the current trajectory of economic and monetary policy unchanged over the next few years.2
Geopolitical Factors
The global landscape remains fraught with uncertainty due to continuing conflicts, governance transitions, and economic debates. These factors keep the global stage unpredictable, underscoring the importance of vigilance in considering how they might impact both international and domestic investments.3
Bitcoin
In December 2024, Bitcoin catapulted above $100,000 for the first time, a milestone hailed even by skeptics as a coming-of-age for digital assets. There's little doubt that cryptocurrency is here to stay and will continue to evolve, given its ability to facilitate decentralized transactions in an increasingly digital world. However, while its potential for future widespread adoption presents exciting opportunities, it's important to be mindful of its inherent volatility and the risks it carries.4
As these factors continue to take shape, your financial advisor is here to help you plan for 2025 and beyond with guided knowledge and confidence in the road ahead.
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OneAZ Wealth Management is a team of LPL Financial licensed professionals and support staff located in OneAZ Credit Union branches across Arizona. OneAZ Wealth Management provides investments, insurance, and retirement planning services intended to guide credit union members towards their financial goals. To learn more about OneAZ Wealth Management, visit OneAZWealth.com or call (877) 566-0517.
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1. Russellinvestments.com, December 4, 2024. "An investor's guide to potential U.S. policy changes in 2025."
2. Goldmansachs.com, 2024. "The US economy is poised to beat expectations in 2025."
3. Invesco.com, December 17, 2024. "Fiscal conservatism and other global economic themes for 2025"
4. Reuters.com, December 5, 2024. "Bitcoin storms above $100,000 as Trump 2.0 fuels crypto euphoria."
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