Next year, the major banks in the USA will usher in a "harvest" year, and every business will "flourish everywhere"?
With the Federal Reserve likely to slow down the pace of interest rate cuts next year, higher rates are expected to expand Banks' net interest margins; incoming USA president Trump is also expected to ease regulations and scrutiny on the financial sector; Analysts surveyed by Institutions generally expect that revenues across all sectors of the world's top Banks (except for FICC Trade) will see the first growth since 2021 next year.
Top ten macro events globally in 2024: The US and Japan central banks both pivot, China's Assets explode, and epic surge of Gold and Bitcoin.
This year, major global central banks, including the Federal Reserve and the European Central Bank, have all entered a path of easing, while the Bank of Japan announced the end of the negative interest rate era. The narrowing of the interest rate differential between Japan and the USA briefly spurred a reversal in yen carry trades. Chinese assets have strongly rebounded under the boost of policy 'combinations'. The US elections have driven the 'Trump trade' to become popular, with Bitcoin and Gold, the two major assets, dominating in chaotic times.
Dollar Slips at End of Bumper Year -- Market Talk
High inflation is "squeezing" bottom-tier consumers, and the USA credit card default rate has reached a new high in 14 years.
The credit card loan default rate in the USA has reached its highest level since the financial crisis, indicating that the financial situation of low-income Consumers is deteriorating after years of high inflation.
Goldman Sachs annual forecast: "Trump 2.0" top ten key issues.
Goldman Sachs predicts that next year, the USA's economic and Consumer growth will exceed general market expectations, but Goldman Sachs remains more dovish than the market, expecting the Federal Reserve to cut interest rates three more times in March, June, and September 2025. Goldman Sachs believes that Trump is unlikely to fire or demote Powell.
Gold Price Set to Finish the Year With Gains, Driven by Bank Purchases, Geopolitical Tensions
