Wells Fargo insight into current U.S. and international events that affect the economy and financial markets.
Wells Fargo Weekly Commentary 23 May 2025
• Housing still soft: 30-yr mortgage ≈ 7 %, existing-home sales -40 % vs 2021.
• Moody’s cut U.S. debt to AA+ and House bill would widen deficits by an estimated 0.5-1 pp of GDP over the next few years → compounding upward pressure on long-term Treasury yield
• Fed likely on hold through summer, don’t expect rate relief soon.
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