A PwC partner recently said that U.S. merger-and-acquisition (M&A) activity remains on track to accelerate in 2025, despite signals from the Federal Reserve that it may slow the pace of trimming interest rates next year.
In a recent report, the PwC predicted that M&A activity will speed up next year due to “declining interest rates, large amounts of dry powder, the need for business model reinvention and shifting regulatory priorities.”
The Fed’s latest stance doesn’t “materially” impact that assessment, according to PwC U.S. Deals Clients and Markets Leader Liz Crego.
“We are still anticipating that the Fed is going to cut interest rates, so it’s still on the same trajectory,” Crego said in an interview. “They are going in the right direction, albeit maybe not fast enough for some.”