U.S. inflation data in the coming week could test the nerves of stock investors and further inflame worries about rising Treasury yields and uncertainty over Donald Trump's policy plans.
U.S. Consumer Confidence Dips
· 6h
US consumer inflation expectations soar in January on tariff fears
U.S. Consumer Confidence Dips as Inflation Expectations Spike
U.S. consumer confidence clouded over a little this month, after views of the economy weakened on expectations of higher inflation, as President-elect Donald Trump prepares to take office proposing tax cuts and new import tariffs.
U.S. Consumer Sentiment Edges Lower In January As Inflation Expectations Surge
Consumer sentiment in the U.S. has unexpectedly seen a modest deterioration in the month of January, according to preliminary data
U.S. stocks dropped on worries that good news on the job market may prove to be bad for Wall Street by keeping inflation and interest rates high.
· 2d
Federal Reserve Worried About How Trump Policies On Tariffs And Immigration Could Impact Inflation, Minutes Show
· 1d · on MSN
Fed minutes show policymakers see immigration, tariff shifts creating inflation uncertainty
Trump tariffs, immigration policy jolt Fed plans to lower interest rates
Top Federal Reserve officials — including Chair Jerome Powell — are increasingly pointing to an obscure price gauge as a reason to maintain confidence in their outlook: “market-based” inflation.
Participants for the most part favored slowing the pace of rate cuts, after approving a 0.25% reduction last month, the third of the year and which, combined, brought interest rates down 1%. The Federal Reserve's committee's next meeting is scheduled for Jan. 28-29.
Federal Reserve officials at their meeting Dec. 17-18 expected to dial back the pace of interest rate cuts this year in the face of persistently elevated inflation and the threat of widespread tariffs and other potential policy changes.
The Dow Jones Industrial Average ( ^DJI) sank about 1.6%, or close to 700 points, while the S&P 500 ( ^GSPC) also fell 1.5%. The tech-heavy Nasdaq Composite ( ^IXIC) tumbled 1.6%. The three major gauges erased all year-to-date gains with Friday's pullback.
The recent rise in long-term interest rates reflects higher risk premiums as opposed to concerns about inflation, Federal Reserve Bank of Richmond President Thomas Barkin said.
The surprising 256,000 increase in new jobs in December and a declining unemployment rate is good news, but the latest employment reports masks recent softness in the labor market. The increase in new jobs in December, for example, was centered on just four industries: Health care, government, retail and leisure and hospitality.
The average American worker's pay increased at about the same rate as inflation in December, but pop the hood and you'll find some workers fared better than others.
2hon MSN
U.S. stocks fell Friday on worries that good news on the job market may be too good and prove to be bad for Wall Street by keeping inflation and interest rates high. The S&P 500 tumbled 1.5% to close its fourth losing week in the last five.
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