The Federal Reserve’s preferred inflation indicator has come in showing that inflation is still running hotter than expected. This creates a difficult position for the Federal Reserve as it tries to balance interest rate cuts while managing inflation at the same time. Despite previous rate adjustments, inflation has remained stubbornly high. It remains to be seen whether any monetary policy will be able to curb the recent trend as it stands. This was also accompanied by a 0.4% increase in personal income, which has been the status quo for some time now. Inflation outpacing wage growth has been a major…

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 that Americans’ buying habits have changed substantially from the prior year, offering further insight that price pressures are still present at current…

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. Sentiment surged for consumers with the largest stock portfolios, while it stagnated and remained at dismal levels for consumers without stock holdings.Consumer CreditIn 2025, consumer credit increased 2.4 percent, with…