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Market Snapshot 01/31/2025 – January Is In The Books

Good Friday AM from your hometown lender,

Well, January is in the books.

1/12th or 8.33% of 2025 is already gone. It seems like the holidays were just here. With February starting tomorrow, it is time to get into a higher gear as spring is coming and March closings will be contracted soon.

This was a busy week in the markets.

All in all, bonds did well even in the face of a Fed meeting and PCE inflation data where neither was particularly bond friendly. Additionally, we had some commentary from a Fed Governor today (Michelle Bowman) indicating she has concerns over inflation. Normally, this would have sent rates higher but that was the old normal which was considered the new normal but that new normal is not today’s new normal which is more focused on President Trump’s economic policies than data.

President Trump did comment “Because Jay Powell and the Fed failed to stop the problem they created with inflation, I will do it,” after the Fed meeting that he would reduce interest rates regardless of what the Fed is doing which, while I am not sure of the levers, he will pull to do that, I won’t be surprised if he is successful.

On the tariff watch…

Starting tomorrow, Mexico and Canada will be charged 25% on their goods coming into the US… fortunately, oil is excluded from the tariffs so hopefully, there will be no impact to inflation despite higher prices for food, building materials and autos.

Next week brings a lot of employment data which will be keenly watched by all.

Lots of moving parts… I’m excited…

Stay safe, enjoy the weekend and first, make today great!!!

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