Private equity's lowered expectations

Private equity entered 2025 with high hopes for a deals boom, to be driven by decreased regulation and interest rate cuts.

The big picture: That second part is increasingly uncertain, which perhaps helps explain why U.S. private equity activity is 53% lower than at this time last year.

State of play: The Fed typically weighs both inflation and labor market conditions when deciding rate changes. Right now it's in a holding pattern. READ MORE