The Monthly Review: N.8 2025

Michele’s commentary focuses on the contrast between the apparent strength of financial markets and the signs of slowdown emerging from the real economy and the geopolitical landscape. Despite weakening U.S. growth and rising inflationary pressures linked to tariffs, expectations of Fed rate cuts continue to support equities. In the background, concerns are resurfacing around the sustainability of U.S. debt and the dollar’s role as a global reserve currency.