Not aligned

Yesterday, the economic data published in the U.S. showed a deteriorating picture: 1Q GDP revised up from -0.3% to -0.2%. Slightly better than the first reading, but still negative. Pending home sales dipped 6% vs an estimate of 0.9% and both initial and continuing jobless claims went up more than expected. Meanwhile, the tariff drama will likely be taken to court, but in the meantime, they will continue to be in place, while we wait for the Senate to ok the OBBB. We still don’t have a date for the second round of negotiations with China, and it appears that we have hit a dead end, and now it’s time for Trump-Xi to sit at the table. The trade weighted dollar index is down 9% YTD, consistent with a high and growing deficit, high levels of debt and uncertainty about trade. Interestingly as well, Jereome Powell (Fed chairman) was at the White House yesterday to meet with the president, and was very quick to put out a statement clarifying that it was an update and that it’s independence was unquestionable. He reiterated that rate cuts will only come if the economic data supports them. It feels like something big needs to happen for Congress, the Fed, the legislative branch and the Fed to work in unison to tackle the debt and spending problems.

Want to know more? You can find all our posts at https://www.myfundamental.net/insights

#iamfundamental #soyfundamental #wealthmanagement #familyoffice #financialadvisor #financialplanning

#policymistake #ratecut #stagflation