The week was filled with crucial financial updates and forecasts. Of particular note were the inflation indicator favored by the US Federal Reserve which met Americans’ expectations and growing fears regarding the national debt crisis. Furthermore, the market was filled with speculation regarding the possibility of a recession, a potential second term for Trump, and probing questions about US monetary policy from the president of El Salvador.
The Fed’s inflation gauge is in line with forecasts, indicating progression towards the 2% inflation target. The personal consumption expenditure (PCE) price index, the Federal Reserve’s preferred measure of inflation, hit the mark in January. This comes in the context of traders’ expectations of a federal rate cut by the end of the first half. The impact was immediately felt in the Treasury market, with yields overall falling, including a drop in the benchmark 10-year yield to 4.28% shortly after the PCE’s release. Read the full article here.
American citizens are expressing growing concern about the national debt. A new study indicates that more than 85% of Americans are deeply concerned about the potential impact of the national debt on their future. The survey, conducted by John Zogby Strategies for Main Street Economics, reveals a pervasive anxiety that appears to eclipse current economic conditions and casts a problematic outlook for years to come. Read the full article here.
See also: ‘Why Saudi Arabia gave Jared Kushner $2 billion’: Democrat targets Donald Trump’s daughter
JPMorgan CEO expresses concern about US economy. Jamie Dimon, CEO of JPMorgan Chase, expressed his concerns about the potential for a recession and the market’s underestimation of the associated risks. Despite his cautious attitude, Dimon doesn’t foresee any systemic problems. Read the full article here.
Potential implications of a second Trump presidency on the stock market. As rumors swirl about the possibility of Donald Trump returning to the presidency, investors are pondering the potential effects on the stock market. Capital Economics suggests that a second Trump term could significantly affect inflation, interest rates and the US dollar, potentially causing headwinds for stock prices. Read the full article here.
El Salvador’s pro-Bitcoin president questions US monetary policy. Nayib Bukele, president of El Salvador, expressed concern about the US government’s ability to continue printing unlimited amounts of money. Bukele, known for his pro-Bitcoin stance, took to X, formerly Twitter, to express his doubts about the sustainability of current US monetary policies. Read the full article here.
Read next: Jim Jordan steps in to defend Trump’s son-in-law after Hunter Biden raises Jared Kushner’s Saudi deals
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