_{ECONOMIC NEWS}

Strategist Predicts More Economic Disruptions in 2025 if High Interest Rates Persist

Altaf Kassam, State Street's head of investment strategy for EMEA, warned on CNBC that the U.S. economy could face difficulties in 2025 if the Federal Reserve does not address interest rates soon. He explained that the traditional mechanisms for monetary policy have become less effective, meaning any Fed actions would take longer to impact the real economy. This is largely due to consumers and companies having locked in low-interest rates during the COVID-19 era, which shields them temporarily but may lead to problems during refinancing periods expected around 2025. Despite current robust economic indicators and persistent inflation, expectations for immediate Fed rate cuts have waned, with some financial institutions now predicting a rate cut as late as December, diverging from earlier and more aggressive forecasts. Read More.

_{FINANCIAL FORECAST}

Citi Predicts Gold Could Sparkle to $3,000, Shining 'Bright Like a Diamond'

Gold prices have surged to near-record highs, fueled by geopolitical tensions in the Middle East and a robust demand for safe-haven assets. Following Iran's significant military action against Israel, gold prices reached a new record close of $2,383 per ounce, with expectations of potentially higher values due to the ongoing conflict. Analysts, including those from Citi, predict that gold could climb to $3,000 per ounce within the next 6 to 18 months, citing factors such as inflation, central bank policies, and geopolitical risks. Despite some shifts in interest rate expectations, the general sentiment around gold remains bullish, with Goldman Sachs also raising its end-of-year price target for the metal. Read Now.