Wholesale prices in the U.S. increased by 0.4% in January compared to the previous month, far exceeding expectations due to rising food and energy prices. This makes inflation a pressing issue as the consumer price index (#cpi ) also reached its highest level in over a year.

  • The U.S. Bureau of Labor Statistics reported that the producer price index (#PPI ) for December was also revised up to 0.5%, indicating that inflationary pressures are still increasing.

Hope for Interest Rate Cuts Wanes

With the out-of-control inflation situation, the likelihood of the Federal Reserve (Fed) cutting interest rates in 2025 is gradually diminishing.

  • Some economists predict no interest rate cuts this year, and there are even concerns that the Fed could raise rates again if the situation worsens.

  • Fed Chair Jerome Powell stated that inflation expectations remain under control, but President Donald Trump's tariff policies are creating economic uncertainty.

Americans Concerned About Economic Future

According to a survey by the University of Michigan and the Federal Reserve Bank of New York, people are increasingly concerned about the economic outlook, especially as news about tariffs is continuously mentioned.

  • Trump continues to threaten to impose more tariffs on imported goods, putting pressure on prices and the cost of living.

Changes in the U.S. Government Cabinet

  • Robert F. Kennedy Jr. has been confirmed by the U.S. Senate as Secretary of Health and Human Services, despite Democratic opposition due to his controversial views on vaccines.

  • Kash Patel, a candidate for FBI Director, is also getting closer to being confirmed despite criticism over a lack of experience.

Debate Over Diversity and Equity Policies

JPMorgan CEO Jamie Dimon stated that the bank will cut some diversity programs due to cost reasons, while still committed to supporting minority communities.

  • This move comes amid many financial companies adjusting their DEI (Diversity, Equity, and Inclusion) policies after $TRUMP was re-elected.

Risk Warning

High inflation could impact the economy and the lives of Americans. People need to closely monitor the economic situation and thoroughly consider their financial decisions. #anhbacong