City National Rochdale – Economic Outlook and Investment Strategy

The main theme of the report concerns economic outlook and investment strategy.

Key findings include strong financial positions of corporations and consumers, but concerns about tariffs affecting behavior and sentiment. Consumption of services remains strong, while spending on goods slowed in the first quarter. The labor market continues to balance, but negative impacts from public sector cuts are possible. Uncertainty in tariff policy creates uncertainty in the economic forecast. Potential tax cuts and deregulation may support economic growth. Service inflation is slowly decreasing, but there is an increase in goods prices. The Federal Reserve is not in a hurry to change monetary policy but plans a 50 basis point rate cut this year.