Spring is around the corner—a season of change. And that’s timely, given what we’ve seen in the news so far; 2025 is shaping up to be a year of change.
From tariff threats and evolving geopolitical dynamics to inflation that refuses to ease, there’s a good potential for turbulence on the horizon.
So, the best advice? Buckle up.
Finance Rates: Volatility Persists
From a finance perspective, rates continue their volatile trend. Looking back at our key indicator—the 10-year Treasury—we’ve seen a 0.21% rate decrease since the last issue of The Plane Truth as of early March.
Keep in mind, we’ve seen rates go up and down in various amounts of the past year, so it’s possible rates may increase back to that level we saw in February, if not higher.
On the other hand, it’s also possible rates stay steady or decline further. As I said before, buckle up.
What about the Federal Reserve and their interest rate setting? After holding rates steady at their last meeting, all eyes are on inflation and job data. A slowdown could spur the Fed to change course and lower rates later this year.Â
On the other hand, if inflation stays stubbornly high, expect the Fed to stand firm and leave rates unchanged.
2025 Economic Outlook: Impact on Aircraft Financing
What does this all mean for aircraft financing and aircraft transactions? So far, 2025 has started strong with transaction volume.
Anecdotally, market activity is healthy, and our team at Scope has been pleased with the pace of closings.
This is encouraging. But as we enter into spring, be sure to keep those seatbelts fastened in case of rough air.