It will take time for the dust to settle, but Friday’s employment report clearly kicked up a sandstorm, prompting markets, pundits and oddsmakers to reassess the economic landscape and the policy response. Predictably, the surprisingly downbeat news on the jobs front ignited a dramatic knee jerk reaction, as it undercut widespread notions of the economy’s…
The Federal Reserve could not be happy with the hotter than expected print for wholesale prices released on Friday. The PPI increased by an outsized 0.5 % in January following an upwardly revised 0.4 % advance in December. While the core PPI came in as expected, at 0.3 %, the service price components remained sticky…
Tensions are escalating on a number of fronts, from military developments, conflicting economic data and, somewhat surprisingly, a Supreme Court ruling on Friday upending the administration signature trade policies. The ruling, which disallowed the administration’s use of emergency powers to justify the avalanche of tariffs over the past year, was not entirely unexpected, but it…
Like the fictional King of Siam who grappled with what he knows and what he doesn’t know, so too must economists as well as the Fed view this week’s batch of data as a”puzzlement”. The January employment report flpped the no hiring/no firing narrative on its head; the December retail sales report upended notions that…
To say it was a topsy-turvy week in the markets would be an understatement, as extreme volatility buffeted stocks, bonds and commodities. Gold and silver suffered their biggest one-day plunge in over 35 years to start the week, after hitting record highs at the end of the previous week. Similar, if less extreme, daily swings…
The financial markets dodged two potential disrupters this week, as the choice of a new Federal Reserve Chair was revealed and another government shutdown was avoided. President Trump’s chosen nominee for the Fed Chair, Kevin Warsh, is less controversial than some of the other names bandied about and is more likely to be confirmed by…
If Benjamin Franklin was alive and able to amend his most popular quote, he might add uncertainty to death and taxes as the only sure events in life. Admittedly, we believed that the arrival of the new year would see a taming of the headline-grabbing uncertainty that buffeted the economy and financial markets in 2025,…
A big fear during the government shutdown was that the data blackout might be cloaking fundamental shifts in the economy even as it kept policymakers mostly in the dark and, hence, wary of responding inappropriately. Amid that proverbial fear of the unknown, the Fed understandably chose to mitigate the bigger risk, taking out preventive rate…
With the jobs report for December now on the books, it’s time to say a not-so-fondly goodbye to 2025. To be sure, the data are preliminary and subject to revision, and a bevy of other reports capturing year-end activity is yet to come. But jobs are the main engine of growth, and its trend provides…
Unless meaningful data comes out over the holidays, this will be the last full weekly for 2025, although we may publish a truncated version before the end of the year. We would like to wish all of our readers a happy and prosperous holiday season. On the surface, the Fed has to be pleased with…