There was significant change in monetary policy expectations at the end of the quarter. Expectations up until June were for the Federal Reserve to remain on hold regarding further rate cuts. Global economic indicators showed a slowdown due to tariff policies affecting trade. Manufacturing PMI outside of the U.S. began to contract, and export orders slowed. This trade uncertainty affected U.S. business decisions as well as international trade. At the end of June, markets priced in a higher than 90% chance that the Fed will cut rates.

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