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…

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 production pathways has increased more than expected. This is likely to result in a noticeable increase in wholesale prices across…