In this episode, we review recent economic developments, including the ISM manufacturing report signaling slower growth and rising inflation pressures.
Consumer sentiment and personal spending have dropped, with inflation expectations rising and the trade deficit widening as businesses rush to import goods before tariffs take effect. These factors point to slower economic growth, higher inflation, and interest rates, affecting equity markets and bond returns. John also discusses the impact of tariffs on markets, including specific benchmarks like softwood lumber and natural gas, and the potential for tariff-related negotiations. The stronger U.S. dollar, driven by tariffs, could hurt export competitiveness and further increase the trade deficit.
Looking ahead, keep an eye on the March 12th CPI release and the Federal Reserve's March 19th decision on interest rates. Make sure to subscribe for weekly updates and expert insights.
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