While a stop-gap funding deal is in place, the government still has some work to do to fill in its backlog of missing economic data.
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In September, Fed Chair Jerome Powell said that nine of the Fed’s 19 policymakers favored no more than one additional rate cut this year.
The report cautions tariffs are driving inflation higher and says companies are grappling with whether to pass the costs to consumers.
In a speech in Rhode Island, Jerome Powell reminded Wall Street and the world that The Fed remains in a “challenging situation.”
The hope for the S&P 500’s small-cap cousin after the Fed’s rate cut tells an important story about the broader economy.
A full 37% of homebuilders have slashed prices this month, down ever so slightly from a record 38% in July.
The economy added just 73,000 jobs in July, according to the Labor Department, well below the expectations of economists surveyed.
The S&P 500’s recent record high marked an encouraging sign that markets are no longer all that concerned with worst-case trade war scenarios.
Simply put, Powell says he needs to wait and see June and July price data to know just how impactful and inflationary tariffs have been.
Despite new data this week showing inflation has cooled, Powell and the Federal Reserve are still expected to hold off on rate cuts.
The Fed was already walking a tightrope over a bottomless pit of stagflation before waves of tariffs came to rattle the line.
The US dollar hit a three year low against a basket of currencies Monday, highlighting investor concerns about US assets.
That’s right: CPI fell 0.1% in March, according to the US Labor Department, marking the first month-over-month decline since May 2020.
As Kenny Rogers sang, gamblers have to know when to hold them. When it comes to interest rates, so, too, do central banks.
The good news: Inflation may be calming down. The bad news: Likely-inflationary tariffs are just starting to hit now.
The prices that were supposed to be going down “starting on Day One,” as the White House promised, are going up instead.