Focus Partners’ Kevin Grogan shares perspectives on the economy as we begin 2025.
The U.S. economy had a strong run in 2024, with real annualized GDP growth at 3.1% for the third quarter and fourth-quarter estimates between 2%-2.5%.1 However, rising long-term interest rates, with the 10-year Treasury climbing from 3.8% to 4.6% in the fourth quarter, pose a potential risk to GDP growth in 2025. This unusual increase comes as the Federal Reserve has been lowering short-term rates, reflecting market concerns about U.S. fiscal stability or resurgent inflation. If you’d like a more detailed analysis, our Quarterly Outlook draws parallels between the current environment and the inflationary period of the 1970s and early 1980s.
For a deeper dive into these topics, read the full outlook report.
1Bureau of Economic Analysis.
© 2025 Focus Partners Wealth. Services are offered through Focus Partners Wealth, LLC (“Focus Partners”), an SEC registered investment adviser with offices throughout the country. Registration with the SEC does not imply a certain level of skill or training and does not imply that the SEC has endorsed or approved the qualifications of Focus Partners or its representatives. Prior to January 2025, Focus Partners was named The Colony Group, LLC. Focus Partners has been part of the Focus Financial Partners partnership since 2011. R-25-8100.
Focus Partners Advisor Solutions
When advisors work with Focus Partners Advisor Solutions, they gain the strength of a nationwide community of wealth management professionals. With the support of a diverse team of financial planning leaders, tax professionals, investment researchers and portfolio managers, advisors are able to orchestrate a bespoke plan, tailored to each client’s unique situation. Clients benefit from Focus’s team of dedicated professionals who are constantly exploring and assessing the ever-changing landscape of investments, tax code, markets and planning strategies—with a singular focus on maintaining an evidence-driven, fiduciary approach that puts client’s interests first.
