Keyword → Inflation

Trump Imposes 10% Global Tariff Under Section 122, Rattling Markets and Prompting EU Warning

President Donald Trump has activated a 10% blanket tariff on imports from virtually every country under the rarely invoked Section 122 of U.S. trade law, following the Supreme Court's decision to strike down his earlier reciprocal tariff regime. The European Commission responded swiftly, warning that the new levies are not conducive to fair transatlantic trade and threatening retaliatory measures, sending major U.S. equity indexes sharply lower before a partial recovery on Tuesday.

Gold Surges Past $5,100 Per Ounce as Trade Chaos and Dollar Weakness Drive Safe-Haven Demand

Gold prices climbed above $5,100 per ounce on Monday as investors fled to safe-haven assets following President Trump's announcement of a 15% global tariff and the resulting uncertainty over the future of U.S. trade policy. The dollar fell against major currencies including the yen, euro, and Swiss franc, amplifying gold's move higher, while silver surged to approximately $85 per ounce. Mining stocks and precious metals ETFs rallied sharply, outperforming a broadly weaker equity market.

U.S. Fourth-Quarter GDP Slumps to 1.4%, Core PCE Inflation Climbs to 3% in Stagflation-Lite Warning

The U.S. economy expanded at a meager annualized rate of 1.4% in the fourth quarter of 2025, sharply missing consensus expectations of 2.8% to 3%, while the Federal Reserve's preferred inflation gauge, core PCE, accelerated to 3.0% — a combination that has investors bracing for a prolonged pause in rate cuts and reigniting fears of a stagflationary environment heading into 2026.

Fed Minutes Signal Higher-for-Longer Resolve as Officials Demand Sustained Disinflation Before Any Rate Cut

Minutes from the Federal Reserve's January FOMC meeting, released Wednesday, revealed a sharply hawkish tilt among policymakers, with most officials signaling that sustained progress on inflation — not merely a single favorable data print — would be required before resuming rate cuts, pushing market expectations for the first 2026 reduction firmly to July and pressuring rate-sensitive equities, financials, and growth stocks.

Fed Minutes Reveal Deep Divide on Rate Path as Powell Succession Looms

Minutes from the Federal Reserve's January policy meeting, released Wednesday, showed officials broadly endorsing a pause in rate cuts but sharply divided on what comes next, with some members open to resuming easing if inflation continues to cool and others arguing for an extended hold — a split that is amplifying market uncertainty ahead of Friday's critical GDP and PCE data release.

Gold Hovers Near $5,000 as Safe-Haven Demand, Central Bank Buying, and Rate Uncertainty Converge

Gold remained firmly anchored near the $4,990 per ounce level on Thursday as a confluence of persistent geopolitical tensions, continued central bank accumulation led by China's People's Bank, and growing expectations for additional Federal Reserve rate cuts kept bullion elevated after its historic surge of more than 60% in 2025 — with major banks targeting prices well above $5,000 by year-end.

Wall Street Braces for Friday's GDP and PCE 'Data Deluge' — A Potential Inflection Point for 2026 Markets

Investors are positioning defensively ahead of Friday's simultaneous release of the Q4 2025 advance GDP estimate and December PCE inflation data — a rare consolidation of two pivotal economic reports that analysts are calling the 'ultimate reality check' for the 2026 outlook, with consensus projecting 2.8% annualized GDP growth and core PCE inflation of 2.8% year-over-year, either of which could dramatically reprice rate expectations across equity, bond, and currency markets.

Market Risks Rise as Investor Optimism Nears Multi-Year Highs

Investor sentiment has surged to levels not seen in years, raising concerns among strategists that markets may be overextended and vulnerable to correction. With broad bullishness persisting and allocations heavily tilted toward equities, analysts advise selectivity in stock picking as risks tied to inflation and rising yields intensify.

Tax Foundation Report Confirms Tariffs as Largest Tax Hike Since 1993, Weighing on 2026 Outlook

A comprehensive analysis released today by the Tax Foundation reveals that the cumulative impact of recent US tariffs represents the largest tax increase as a share of GDP in over three decades. The report estimates an average annual burden of $1,300 per US household in 2026, with businesses and consumers bearing nearly 90% of the costs. This structural drag is increasingly reflected in the downward revision of earnings guidance across the industrial, consumer discretionary, and healthcare sectors.