Markets & Economic Update for June 2025: Markets Rally and The Fed Holds Steady

Markets are rallying, tariffs are in flux, inflation is cooling—yet uncertainty still looms. In this edition of our Monthly Economic Update, Hancock Whitney’s Asset Management team breaks down the complex economic forces shaping markets and portfolios right now.

June 2025 Markets and Economic Outlook Webinar

This Month: 

• Stocks roar back from a steep decline: After a 19% drawdown earlier this year, equity markets surged in May—fueled by cooling tariff fears, strong earnings, and a wave of investor optimism across U.S. and international markets.
• Tariffs as negotiation tools—not policy endpoints: The administration’s tariff proposals—including company-specific threats—appear to be part of a strategic pattern of escalation and retreat. Learn how markets are reacting—and what’s likely next.
• GDP outlook improves after a rocky start: The economy is regaining momentum in Q2, with consumer spending rebounding and some forecasters eyeing 4% growth. Could we hit the Fed’s soft landing after all?
• Inflation risks rise—but remain in check: Rising tariff collections are signaling potential inflation pressure in the months ahead. The team explains why they believe any uptick will be modest—and likely short-lived.
• The Fed stays on the sidelines—for now: With inflation stabilizing and growth firming, the Fed has little urgency to cut rates. Get the team’s take on when policy may shift—and what investors should watch for next.