Goldman Trader: Tightening Of Financial Conditions Is Just Starting, But Cuts Resume In H2 2025

By Paolo Schiavone, Goldman Vice President and FICC/equity trader

Over the last 3 month we had positive cross assets correlations. USD up, Yields up , Equities up. But....

• Yields are no longer going up because of growth; they are going up because of hawkish monetary policy repricing.
• Stronger growth keeps the market worrying about the Fed as good economic news is now bad news for equities.