Snippet from Deutsche Bank, in brief:
- base case for 2025 is stronger US growth and inflation
- higher FOMC terminal rate than previously expected
- opposite
applies to Europe
On the US DB:
- assumes modest US
tax cuts - strong deregulation efforts
- more supportive
financial conditions - assume a 10%
increase in the tariff rate on imports from China in H1 (ratcheting
up a further 10pp in H2) - equalisation of tariff rates on motor
vehicles with Europe -
assume a 5% universal baseline tariff (more likely
to be implemented late 2025/early 2026)
This article was written by Eamonn Sheridan at www.forexlive.com. Source