Group 1: Economic Outlook - The US economy is expected to grow at an annualized rate of 5.2% in Q2 2025, with domestic demand contributing significantly to this growth[8] - The unemployment rate in the US is currently at 4.2%, indicating a state of full employment[19] - The US fiscal deficit is projected to increase by approximately $1.76 trillion over the next five years due to recent fiscal policies[27] Group 2: Monetary Policy and Interest Rates - The Federal Reserve is anticipated to maintain the federal funds rate between 4.25% and 4.50% as of May 2025, with a potential for rate cuts in September and December 2025[64][65] - The Fed's balance sheet has decreased from $9 trillion to $6.7 trillion, reflecting a reduction in monetary stimulus[67] Group 3: Inflation and Consumer Prices - The Consumer Price Index (CPI) in the US was reported at 2.3% in April 2025, showing a slight decline from previous months[61] - Core CPI remained stable at 2.8% in April 2025, indicating persistent inflationary pressures despite recent policy measures[61] Group 4: Trade and Tariff Policies - The US has implemented tariffs on steel and aluminum, raising rates to 50%, which may impact inflation and trade balances[46] - The average tariff rate on imports from China is currently around 16.80%, reflecting ongoing trade tensions[45] Group 5: Market Trends and Asset Performance - The stock market is expected to remain in a state of fluctuation due to weak catalysts and stable economic fundamentals[7] - Bond yields are projected to decline slightly if the central bank resumes purchasing government bonds[7]