The week was peppered with crucial financial updates and forecasts. Of particular interest were the US Federal Reserve's preferred inflation gauge that met Americans' expectations and growing fears about the national debt crisis. In addition, the market was rife with speculation about the possibility of a recession, a possible second term for Trump and probing questions about US monetary policy from the president of El Salvador.
Federal Reserve inflation gauge aligns with predictions, which means progress towards the 2% inflation target. The Personal Consumption Expenditure (PCE) price index, the Federal Reserve's preferred measure of inflation, hit the mark in January. This comes amid traders' expectations of a federal rate cut by the end of the first half. The impact was immediately felt in the Treasury market, with yields falling across the board, including a drop in the benchmark 10-year yield to 4.28% shortly after the PCE release. Read the full article here.
US Citizens Express Growing Concern About National Debt. A new study indicates that more than 85% of Americans are deeply concerned about the potential impact of the national debt on their future. The survey, conducted by John Zogby Strategies for Main Street Economics, reveals widespread anxiety that appears to overshadow current economic conditions and projects a troubled outlook for years to come. Read the full article here.
See also: 'Why Saudi Arabia gave Jared Kushner $2 billion?': House Democrat targets Donald Trump's daughter
JPMorgan CEO expresses concern about US economy. Jamie Dimon, CEO of JPMorgan Chase, has expressed concern about the possibility of a recession and the market's underestimation of the associated risks. Despite his cautious stance, Dimon doesn't foresee any systemic problems. Read the full article here.
Possible implications of a second Trump presidency on the stock market. As rumors circulate about the possibility of Donald Trump's return to the presidency, investors reflect on the possible effects on the stock market. Capital Economics suggests that a second Trump term could significantly influence inflation, interest rates and the US dollar, potentially creating a headwind for stock prices. Read the full article here.
El Salvador's pro-Bitcoin president questions US monetary policy. Nayib Bukele, president of El Salvador, has expressed concern about the US government's ability to continue printing unlimited amounts of money. Bukele, known for his pro-Bitcoin stance, took to X, formerly Twitter, to express his doubts about the sustainability of current US monetary policies. Read the full article here.
Read next: Jim Jordan steps in to defend Trump's son-in-law after Hunter Biden raises Jared Kushner's Saudi deals
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