Indian households expect a significant decline in price pressures over the next year across all major product categories, including food, RBI survey says https://t.co/hum5FHHTtg ...

US bond traders will be scouring inflation data for signs of persistent price pressures https://t.co/93NUn4E0yT ...

Economic Outlook & Monetary Policy - Retail sales show positive signs, indicating the economy isn't declining sharply [1][4] - The market anticipates the Federal Reserve will cut rates this year, but the timing remains uncertain [5] - Some believe the Fed should cut rates aggressively to stimulate the economy, potentially requiring more than 25-50 basis points [6] - Neutral interest rates are likely higher than current estimates, possibly around 3-35%, suggesting less need for aggressive rate cuts to stimulate the economy [7] - Calibrating rates to the underlying economic dynamics is crucial [8] Tariffs & Inflation - Companies have significant cash reserves (over $25 trillion outside of tech) and free cash flow to absorb tariff costs [2] - External producers may be absorbing some tariff costs, similar to 2019 [3] - The worst fears surrounding tariffs may be averted, but price pressures are still emerging [3] - The Federal Reserve's ability to look past short-term price pressures is crucial [3] Housing Market - Regulation at the state and local level is a major factor driving elevated home prices [9] - Addressing regulation is essential for long-term affordability in the housing market [9] - Cyclical solutions include increasing supply and reducing mortgage rates, but these won't fully address the regulatory impact [9] - The prospective buyers index is at a new cycle low [8] Capital Expenditure (CAPEX) & Resources - The industry is focused on capital expenditure, particularly related to AI and data centers [10] - Data centers require significant resources, especially water, highlighting the need for desalination [11] - Desalination requires energy, emphasizing the interconnectedness of energy and resource management [11][12] - Innovation in desalination to reduce energy consumption is crucial [12]