Wholesale Prices Surprise – Hold Steady
Wholesale prices remained flat in February, providing some relief on inflation worries as the producer price index (PPI) showed no monthly increase. Core PPI, excluding food and energy, dipped 0.1%, marking its first decline since July, while year-over-year PPI rose 3.2%, down from January’s 3.7%. Stock market futures improved slightly after the report, though concerns persist over the inflationary impact of President Trump’s tariffs. The Federal Reserve is expected to maintain its current stance on interest rates, with markets predicting the next rate cut in June.
Mortgage Demand Rises
Mortgage rates fell to their lowest level since October 2024, driving an 11.2% increase in total mortgage applications last week. Refinancing applications jumped 16% from the previous week and were 90% higher than the same period last year, while purchase applications rose 7% weekly and 4% annually. The FHA rate also declined to 6.34%, contributing to an 11% boost in government-backed loan applications. As the spring homebuying season gains momentum, mortgage rates remain volatile, with upcoming inflation data potentially influencing future movements.
Trump Slaps Tariffs on Steel and Aluminum
President Trump reaffirmed his commitment to imposing steel and aluminum tariffs with no exemptions, along with additional sectoral and reciprocal tariffs starting April 2. While he praised recent investments like TSMC’s $100 billion U.S. expansion, critics warn that his aggressive trade policies could spark a global trade war. Canada and Europe have already retaliated, fueling Wall Street concerns as major U.S. stock indexes slipped into correction territory. Though Trump claimed credit for lowering consumer prices, experts caution that rising costs due to tariffs could soon impact American households.
