Disinflationary forces should prevail in 2025, said Ryan Severino, chief economist and head of research at BGO, at the firm’s Market Outlook & Insights presentation in San Francisco in early March. The word ‘should’ is key in this context, for the uncertainty in geopolitical and economic outcomes make this statement a probability, but not quite a reality.
With inflation expected to decrease, the Federal Reserve is still expected to cut target interest rates in the coming year, followed by further cuts in 2026 and 2027. Currently, the United States is seeing the most aggressive interest rates in four decades. If the Fed does continue cutting rates, the real estate market should benefit, according to Severino.
The United States is still seeing a strong, steady economy, however, as it remains in a dominant position when considering the population versus per-capita GDP. The United States’ strong GDP can be credited to its innovative, high productivity economy,
