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Brace for Impact: De-Risk Your Portfolio Amid Rising Recession Fears

With the risk of a recession growing, many financial experts recommend taking steps to make your investments safer, known as "de-risking." This strategy involves shifting money away from riskier assets like stocks toward less volatile options, such as bonds, high-interest savings accounts, or money market funds. Recently, JP Morgan raised its prediction of a global recession from 40% to 60% for 2025, and Moody’s downgraded America's credit rating, increasing worry among investors. Therefore, experts suggest looking closely at your investments now, adjusting your stock-heavy portfolios, and making sure your financial foundation is strong enough to handle potential economic downturns.

SALT in the Spotlight: Tax Deduction Debate Heats Up Again

In 2025, the SALT deduction has become a central focus again, as Washington considers big changes to tax policy. Under the Tax Cuts and Jobs Act of 2017, this deduction, which allows taxpayers to deduct certain state and local taxes from their federal taxes, was capped at $10,000. This limit has greatly impacted taxpayers living in high-tax states such as New York, California, and New Jersey, as they argue it unfairly increases their federal tax burdens compared to other states. Now, with Republicans holding the presidency and Congress, President Trump and GOP leaders are pushing to raise or change this cap, which could provide relief to millions of taxpayers. However, the debate extends beyond traditionally "blue states," as taxpayers and lawmakers across the political spectrum look carefully at how adjusting this deduction may impact state budgets and overall tax fairness.

Navigating Uncertainty: Seizing Opportunity Amid Market Volatility

As of May 2025, investors continue to face uncertainty despite the recent recovery of the U.S. stock market following a difficult start to the year. Experts suggest viewing this market rebound as a timely opportunity to reevaluate financial plans and reduce risk. Economic challenges, including fears of recession, ongoing disputes about the national debt, and debates over a significant new tax proposal, are creating financial uncertainty. Additionally, the recent downgrade of America's credit rating has drawn attention, although experienced investors note that rating agencies typically react slowly to emerging financial realities. Thus, financial advisors recommend using the current situation to carefully reconsider investment strategies and steer portfolios toward safer choices.

Tariff Tensions Push U.S. Mortgage Rates Higher Amid Economic Uncertainty

As of May 15, 2025, mortgage rates in the United States have increased slightly due to uncertainty surrounding tariffs and inflation, as well as the Federal Reserve's decision not to change interest rates. The average 30-year fixed mortgage rate rose to 6.89%, while the rate for a 15-year mortgage climbed to 6.06%. Economic tensions over continued tariff disputes, particularly those involving trade between the U.S. and China, have investors worried. Tariffs can lead to higher prices on goods, contributing to inflation and potentially slowing down the economy. While the U.S. recently announced a temporary reduction in certain tariffs, concerns over longer-term economic stability remain, keeping both homebuyers and lenders concerned about future interest rate changes.

Mortgage Rates Edge Up Amid Inflation and Trade Turmoil

Mortgage rates increased slightly this week because markets are dealing with ongoing inflation worries and uncertainty around international trade. Rates on mortgages for 30-year and 15-year loans rose moderately, and adjustable rates went up even more significantly. This increase came after the United States and China reached a temporary agreement to lower tariffs, creating optimism but also uncertainty in the financial markets. Economists and Federal Reserve officials have cautioned that continued challenges around tariffs and trade could make it harder to reduce inflation, adding pressure that may keep mortgage rates high in the near future.

Mortgage Rates Tick Up Amid Economic Uncertainty and Fed Caution

Mortgage rates rose slightly this week, bringing the average rate for a 30-year fixed mortgage up to 6.89%. This increase is partly due to ongoing uncertainty in the economy and recent cautious decisions by the Federal Reserve. Although inflation slowed in April according to the latest data, it was not enough to prompt Federal Reserve policymakers to decrease interest rates yet. Homebuyers and investors remain cautious due to worries about both domestic economic stability and global developments, which could keep home borrowing costs high in the near future.

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