Jan 8 (Reuters) - Americans grew more worried about the job market in December even as anxieties over personal finances faded, while near-term inflation expectations increased, a report from the New York Federal Reserve ​showed on Wednesday. Respondents in the regional Fed bank's latest Survey of Consumer Expectations said the prospect of ‌finding a job if unemployed was the worst since the report began in 2013. The worries about getting a new job were led by ‌households that earned under $100,000 per yea ...

Hey, Scott. Yeah. Outgoing Atlanta Fed President Raphael Bostics uh not too concerned about the jobs numbers uh saying he expected them, but he was opposed to the last rate cut says the Fed's credibility is on the line with 5 years of above target inflation.He's concerned rate cuts could anchor inflation expectations uh could unanchor uh inflation expectations. The surveys that he does at the from the Atlanta Fed show firms will continue to increase prices into 2026. the Fed, he says, should keep policy res ...

Happy Friday, traders. Welcome to our weekly market wrap, where we take a look back at these last five trading days with a focus on the market news, economic data, and headlines that had the most impact on gold prices and other key correlated assets— and may continue to in the future. Key Takeaways Gold surged to fresh all-time highs above $4,300/oz after the Fed delivered its final 2025 rate cut, extending the metal’s powerful uptrend. The FOMC’s 25-basis-point cut and renewed Treasury purchases were ...

Core Points - The Federal Reserve has lowered its benchmark interest rate by 25 basis points to a range of 4% to 4.25%, with indications of two more rate cuts expected this year [1] - The decision was not unanimous, with dissent from newly appointed Fed Governor Steven Myron, who preferred a 50 basis point cut [2] - The Fed's economic outlook has improved, projecting GDP growth of 1.6% this year and 1.8% next year, while inflation is expected to remain at 3.1% this year and decrease to 2.6% next year [3][4] Rate Projections - Nine Fed officials anticipate three rate cuts this year, while six expect only one cut, and one official, presumably Myron, predicts six cuts [2] - For next year, the median expectation is for just one additional rate cut [3] Labor Market Insights - The unemployment rate is projected to remain at 4.5% this year, with a slight decrease to 4.4% next year, reflecting concerns about labor market weakness [4] - Fed officials acknowledged a slowdown in job gains and a slight increase in the unemployment rate, indicating a shift from previous assessments of a solid job market [4][5] Economic Conditions - The Fed is concerned about the softening labor market and its impact on consumer spending, with mixed signals regarding economic activity [7][8] - There are conflicting signals in retail sales, with nominal growth suggesting strong consumer spending, but volume declines in certain sectors indicate underlying weaknesses [16][17] Future Considerations - The Fed's approach to rate cuts is characterized by a careful assessment of incoming data and evolving economic conditions, particularly regarding labor market risks [5][26] - The potential for tax refunds and corporate incentives next year could boost consumption and growth, despite current inflationary pressures [12][21]

Core Viewpoint - The Federal Reserve may disappoint market expectations regarding interest rate cuts, with a focus on employment and inflation metrics influencing their decisions [1][5][10]. Interest Rate Outlook - Market anticipates a total of six rate cuts by the end of next year, with the terminal Fed funds rate expected to be lower than the Fed's projections [2][10]. - Recent inflation metrics have shown a broad-based reaceleration, which could complicate the Fed's decision-making process [5][6][7]. - The Fed is likely to adopt a measured approach, assessing economic conditions on a meeting-by-meeting basis rather than committing to aggressive cuts [4][9]. Market Reactions - If the Fed does not align with market expectations for aggressive rate cuts, there is potential for yields to rise, particularly in the 10-year Treasury [9][11]. - Financial conditions remain easy, influenced by market expectations of a lenient policy path, which could lead to an unwind if the Fed's actions do not match these expectations [11][12]. - The current market sentiment is optimistic about potential rate cuts, but uncertainty remains regarding the impact on equities if cuts are less than anticipated [10][11]. Safe Haven Assets - Gold has emerged as a preferred safe haven asset, contrasting with the dollar's performance, indicating a shift in investor sentiment [13][14].

Economic Outlook - The upcoming week is significant with the Federal Reserve meeting and the summary of economic projections expected on Wednesday, which could influence market expectations [2][5] - Retail sales data is anticipated, with core retail sales expected to increase by 0.4% month-over-month, a relatively high target that could impact rate cut expectations if met or exceeded [3][4] Market Reactions - The market is currently pricing in a 25 basis point rate cut for the Fed meeting, with a strong likelihood of at least 75 basis points worth of cuts by December [4][6] - The summary of economic projections is expected to be a major catalyst for market volatility, potentially affecting interest rate trajectories and inflation expectations [5][9] Sector Performance - Small-cap stocks, particularly the Russell 2000, are showing strong performance, nearing all-time highs, indicating a positive trend in this sector [10] - Financials are highlighted as a sector that could benefit from lower rates and increased loan demand, with recent data showing a significant spike in lending demand [11][12] China Economic Data - China's retail sales growth is reported at 3.4% year-over-year, below expectations of 3.9%, while industrial output grew by 5.2%, also below the anticipated 5.7% [14][15] - The Chinese economy is experiencing challenges, but there are signs of stabilization in equity markets, with notable performance from companies like Alibaba [17][18] Nvidia Antitrust Probe - Nvidia is facing a preliminary antitrust investigation from China regarding its 2020 acquisition of Melanex Technologies, which may impact its operations and revenue from the Chinese market [21][22] - China accounts for approximately 17% of Nvidia's total revenue for 2024, making the outcome of this investigation significant for the company's future [23]

Core Insights - U.S. consumer sentiment declined for the second consecutive month in September, with the Consumer Sentiment Index dropping to 55.4 from 58.2 in August, marking the lowest level since May [1] - Economists had anticipated a reading of 58.0, indicating a more pessimistic outlook than expected [1] Economic Vulnerabilities - Consumers are increasingly aware of vulnerabilities in the economy, particularly regarding business conditions, labor markets, and inflation [2] - Current and expected personal finances have decreased by approximately 8% this month, reflecting concerns about economic stability [3] Inflation Expectations - The survey indicated that consumer expectations for inflation over the next year remained steady at 4.8%, while expectations for inflation over the next five years increased from 3.5% to 3.9% [3] - Trade policy, especially tariffs, continues to be a significant concern for consumers, with around 60% mentioning tariffs during interviews [3] Overall Economic Sentiment - Households have expressed a generally negative outlook on the economy for 2025, primarily due to fears that aggressive tariff measures by the government will lead to higher goods prices and reduced purchasing power [4]

Group 1 - The consumer confidence index in the U.S. rose to 61.8 in July, the highest level in nearly five months, reflecting a 1.8% increase from June's 60.7, but a 6.9% decrease year-over-year [1][2] - The index for current conditions increased to 66.8, up 3.1% month-over-month and 6.5% year-over-year, while the future expectations index rose to 58.6%, a 0.9% increase month-over-month but a 14.8% decrease year-over-year [1] - Consumer inflation expectations for the next year decreased to 4.4%, down 0.6 percentage points from June, and for the next five years, it fell to 3.6%, down 0.4 percentage points, marking the lowest expectations since February [1] Group 2 - Despite the increase in consumer confidence, it remains 16% lower than the December figures and significantly below historical averages, indicating ongoing concerns about inflation and economic stability [2] - The report suggests that consumer confidence is contingent on stable future inflation conditions, with external factors like trade policies playing a crucial role [2] - Recent government policies, such as the "big and beautiful" tax and spending bill, have had minimal impact on consumer confidence, highlighting the complexity of consumer sentiment in relation to policy changes [2]

Core Viewpoint - The article discusses the dilemma faced by an individual regarding whether to sell gold holdings for immediate profit or to hold on for potential future gains, highlighting the volatility of gold prices and the influence of global economic factors on investment decisions [3][5][6]. Group 1: Gold Price Trends - Over the past decade, gold prices have experienced significant fluctuations, with a notable increase from around 260 yuan per gram to peaks of over 830 yuan, followed by a decline to approximately 732 yuan [3][5]. - The volatility of gold prices has been around 20% over the past five years, indicating substantial risk and potential profit in gold investments [5]. Group 2: Economic Influences - Global economic conditions, including U.S. Federal Reserve monetary policy, inflation expectations, and trade dynamics, heavily impact gold prices [5]. - Increased inflation pressures have made gold an attractive safe-haven asset for investors, contributing to recent price increases [5]. Group 3: Investment Dilemma - The individual is torn between selling gold for a guaranteed profit of over 150,000 yuan or holding out for potential further appreciation, reflecting a common struggle among investors [6][11]. - The advice from family members represents contrasting investment philosophies: one advocating for immediate cashing out and the other suggesting patience for long-term gains [6][8]. Group 4: Long-term vs Short-term Investment - The article raises questions about whether gold should be viewed as a long-term asset or a short-term trading tool, emphasizing the need for investors to understand their risk tolerance [8]. - The International Monetary Fund (IMF) suggests that future gold market performance will be influenced by ongoing political and economic uncertainties, complicating investment decisions [8].

Core Viewpoint - The article emphasizes the interconnectedness of various asset classes in financial markets, highlighting the recent unusual behavior of U.S. Treasury yields and the dollar's status as a safe haven, alongside the rise of Bitcoin as an alternative investment [1][2]. Group 1: U.S. Treasury Yields - U.S. Treasury yields are inversely related to bond prices, which explains the recent rise in yields as investors sell off U.S. debt [3]. - The yields serve as a benchmark for global asset pricing, influencing the valuation of various risk assets based on their credit and liquidity risks [6][7]. - Changes in U.S. Treasury yields reflect market expectations regarding the U.S. and global economic outlook, with rising yields indicating anticipated economic growth and inflation [8]. Group 2: Federal Reserve and Monetary Policy - U.S. Treasury yields are closely tied to Federal Reserve monetary policy, with changes in the federal funds rate directly impacting short-term yields [9][10]. - Market expectations of future Fed actions, such as rate hikes or cuts, are quickly reflected in Treasury yield movements, affecting the entire yield curve [11]. Group 3: Impact on Currency and Capital Flows - The relative level of U.S. Treasury yields significantly influences the value of the dollar, as higher yields attract international investors seeking better returns [12][13]. - Conversely, lower yields may lead to capital outflows, putting downward pressure on the dollar [14]. Group 4: Asset Valuation and Investment Decisions - Rising U.S. Treasury yields enhance the attractiveness of fixed-income assets, potentially leading to a shift of funds from equities and real estate to the bond market [14]. - In stock valuation models, Treasury yields are used as a discount rate, where increasing yields can lower the present value of future earnings, potentially leading to declining stock valuations [14]. Group 5: Importance of Monitoring Treasury Yields - For participants in global financial markets, understanding and tracking U.S. Treasury yield dynamics is essential for effective trading and investment strategies [15].