Trump will probably seek to ease inflation and lower prices by drilling for more oil, loosening regulations, reducing federal spending, experts say.
Many economists have felt relief over continued GDP growth. But ongoing data releases suggest that the foundation of the economy — consumer spending — isn’t sustainable.
The Federal Reserve is expected to maintain interest rates at 425-450 basis points on January 29, supporting a continued stock market rally. Read more here.
The Consumer Price Index rose 2.9 percent from a year earlier, but a measure of underlying inflation was more encouraging.
The Federal Reserve has now battled high inflation for nearly four years. Economists point to the Federal Reserve's rate cuts, rising oil prices, consumer psychology, and potential tariffs as factors holding back inflation's progress.
Investors should rule out nothing from the Federal Reserve in 2025 if the newly minted Trump administration uncorks fresh tariffs on China and the European Union. "I think rate hikes are possible. Anything is possible.
The pressure on the Fed to declare the race over and continue lowering interest rates is real. It would be a mistake to cave any further. Some measures show inflation holding steady. Others show it trending back up since last July. Either way, it’s above the Fed’s 2% target, and now the 10-year rate is pointing up.
Such a policy could just about be read as consistent with also wanting to maintain the dollar as the pre-eminent reserve currency. For the time being, however, the narrative of US exceptionalism is alive and well,
Mexico's annual inflation rate slowed to its lowest level in almost four years in the first half of January, official data showed on Thursday, a price level likely to encourage the central bank to keep cutting borrowing costs.
Mortgage rates have experienced fluctuations over the last few months, with a general upward trend in recent weeks. As of January 15, 2025, the average 30-year fixed-rate mortgage stands at 7.01%, reflecting a slight increase from earlier this year — and from the rates we saw in late 2024.
President Donald Trump has pledged cheaper prices and lower interest rates, but an economy transformed by the pandemic will make those promises difficult to keep.