Core Viewpoint - The overall growth outlook remains stable despite trade conflicts, with the monetary policy cycle nearing its end [1] Economic Conditions - Medium-term inflation is stabilizing at target levels [1] - Financing conditions are no longer constrained [1] - Private consumption is supporting economic growth [1] Sector Performance - The manufacturing and construction sectors are experiencing a recovery [1] - Defense and infrastructure spending are offsetting the impact of tariffs [1] Labor Market - Wage growth is expected to slow further [1] Energy and Currency - Energy prices and the euro could fluctuate in either direction [1] - The global role of the euro is strong and may further strengthen [1]

Core Viewpoint - The Federal Reserve Governor, Christopher Waller, indicated that debt and deficits will also impact bond market yields, and if these conditions become more persistent and affect financing conditions, they will receive increased attention [1] Group 1 - The influence of debt and deficits on bond market yields is highlighted [1] - Persistent conditions affecting financing will be closely monitored by the Federal Reserve [1]