Following its third consecutive interest rate cut since September, the Federal Reserve has reduced the main interest rate by a quarter percentage point, signaling a potential slowdown in further monetary policy changes. While this policy shift creates a mixed outlook for dealmakers, it also offers greater market predictability, according to analysts. PwC’s recent analysis highlighted that the uncertainty leading up to the November election contributed to an inconsistent recovery in mergers and acquisitions during 2024. The report projects a resurgence in M&A activity in 2025, bolstered by a clearer post-election landscape.
PwC’s findings show that the first 11 months of 2024 recorded 9,780 deals worth $1.05 trillion, marking slight increases in volume and value compared to the previous year. Despite these improvements, the report cautions that significant political changes in the U.S. could introduce volatility, particularly through potential shifts in trade and regulatory policies. While deregulation may benefit industries like oil and gas, sectors like technology could face increased scrutiny. PwC anticipates that with some uncertainties resolved, M&A recovery will gain momentum, though caution remains.
