El Salvador's Pro-Bitcoin President Questions US Monetary Policy, Fed's Inflation Index Meets Forecast, Americans Fear Debt Crisis And More: Economics Weekly Round-Up

The week was peppered with crucial financial updates and forecasts. Of particular note were the U.S. Federal Reserve’s preferred inflation gauge meeting expectations and the escalating fears of Americans regarding the national debt crisis. Additionally, the market was rife with speculation concerning the possibility of a recession, a potential second term for Trump, and probing questions about the US monetary policy from El Salvador’s President.

Fed’s Inflation Gauge Aligns With Predictions, signifying progression toward 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 amidst traders’ expectations of a Federal rate cut by the end of H1. The impact was immediately felt in the Treasury market, with yields across the board falling, including a dip in the 10-year benchmark yield to 4.28% shortly after the PCE release. Read the full article here.

American Citizens Express Growing Concern Over National Debt. A new study indicates that over 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 a pervasive anxiety that seems to eclipse current economic conditions and projects a troubled outlook for the years ahead. Read the full article here.

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JPMorgan CEO Expresses Concern Over US Economy. Jamie Dimon, CEO of JPMorgan Chase, has voiced his concerns about the potential for a recession and the market’s underestimation of associated risks. Despite his cautionary stance, Dimon does not anticipate any systemic issues. Read the full article here.

Potential Implications of a Second Trump Presidency on the Stock Market. As rumors swirl about the possibility of Donald Trump’s return to presidency, investors are mulling over the potential effects on the stock market. Capital Economics suggests that a second Trump term could significantly influence inflation, interest rates, and the US dollar, potentially causing a headwind for stock prices. Read the full article here.

El Salvador’s Pro-Bitcoin President Questions US Monetary Policy. Nayib Bukele, the President of El Salvador, has raised concerns about the U.S. government’s ability to continue printing unlimited amounts of money. Bukele, known for his pro-Bitcoin stance, took to X, formerly Twitter, to voice his doubts about the sustainability of the US’s current monetary policies. Read the full article here.

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