In an unexpected turn, the Consumer Price Index (CPI) showed that inflation came in cooler than expected for the month of January, falling to a five-year low. The jobs report showed that unemployment numbers came in worse than expected, perhaps signaling further hesitation from the Federal Reserve, despite inflation data coming in favorably. This is also in light of retail sales data showing that, when accounting for post-holiday trends, retail activity has hit a significant slump. This suggests … [Read more...]

While Consumer Sentiment has inched up slightly, Consumer Credit tells a different story. Credit usage has continued to rise, suggesting increased financial strain on consumers amid ongoing economic pressures such as inflation. Although another rate cut is still expected, its likelihood remains uncertain under the current administration. Consumer SentimentConsumer sentiment was essentially unchanged, inching up less than one index point from last month and sitting about 20% below January 2025. … [Read more...]

While many were optimistic about an additional rate cut, the Federal Reserve has decided to maintain current interest rates pending further data. They have previously stated that at least one more rate cut would follow the last one, but their stance now appears to depend on the availability of sufficient supporting data. Recent Core PPI reports have also been released, and the data conflicted with earlier CPI and non-core PPI reports. The reports showed that inflation for producers along major … [Read more...]

The Federal Reserve’s preferred inflation indicator — the Personal Consumption Expenditures (PCE) Index — released under delayed conditions, but it was within expectations. Next week will be another Federal Reserve Rate Decision, and it is expected that the Federal Reserve will reduce rates at least one more time. The optimism among the broader market has been showing that multiple sectors that seem unphased by the administrative decisions and current political climate.  … [Read more...]