Last Week: -0.50%
YTD: 2.51%
1 Year: 21.40%
Dow Jones Industrial Average
Last Week: -0.26%
YTD: 4.18%
1 Year: 16.51%
Last Week: -0.83%
YTD: 1.10%
1 Year: 22.87%
Last Week: 0.97%
YTD: 2.28%
1 Year: 14.71%
YTD: 1.69%
1 Year: 24.57%
YTD: 4.41%
1 Year: 18.08%
January Job Growth Misses Expectations
January saw a modest job increase of 143,000, below forecasts, though unemployment edged down to 4% and wages rose sharply by 0.5% for the month. Benchmark revisions lowered the 2024 payroll count by 589,000 but showed a significant rise of 2.23 million in reported employment due to population and immigration adjustments. Job growth was concentrated in health care, retail, and government, while mining-related industries saw declines. Despite muted job gains, financial markets remained steady, with economists noting that the report may not push the Federal Reserve toward rate cuts.
Fed Officials Critical of Inflation Risk from Tariffs
Federal Reserve officials, typically silent on fiscal policy, are increasingly addressing inflation risks from President Trump’s proposed tariffs on major trading partners, including Canada, Mexico, China, and the European Union. Chicago Fed President Austan Goolsbee and Boston Fed President Susan Collins highlighted concerns over potential supply chain disruptions and long-lasting inflationary pressures. The Fed recently held its benchmark interest rate steady but emphasized vigilance in monitoring economic conditions. While economists generally view tariffs as having short-term price effects, the broad scope of these measures raises concerns about persistent inflation, complicating future monetary policy decisions.
Tariff Plan on Steel and Aluminum Draws Trade Concerns
President Trump announced a 25% tariff on all steel and aluminum imports, set to take effect immediately, with reciprocal tariffs on U.S. trading partners expected later in the week. Canada’s steel and aluminum industries, critical to U.S. sectors such as defense and automotive, are likely to be heavily impacted. The Canadian Steel Producers Association criticized the move as unjustified and urged immediate retaliation. Experts warn Trump’s tariff strategy may violate World Trade Organization (WTO) rules, representing the most significant departure from global trade norms since 1947 and potentially disrupting established trade patterns.
