Overview

• Escalation of Israel-Iran hostilities has kept investor sentiment subdued as markets weigh the potential for a broader regional conflict.
• The US dollar has slid about 10% against the euro over six months because of uncertainty over Trump's reciprocal tariff threats and concerns about mounting US debt.
• The Federal Reserve held its benchmark rate at 4.25%–4.50% for the fourth consecutive meeting and projected 1.4% GDP growth and 3% inflation for 2025.
• Gold has surged nearly 30% year-to-date, while Bitcoin has climbed about 60% over the past year as investors seek safe-haven assets.
• Jamie Dimon warned that high US debt levels pose a significant risk to financial stability, with 30-year Treasury yields topping 5% in late May.