Weekly economic and financial commentary
Weekly Economic and Financial Commentary (Simplified)
United States
The U.S. economy remains strong despite uncertainties for 2025.
The main focus for policymakers will be balancing inflation control with reducing pressure on sensitive sectors.
Key upcoming data:
ISM Manufacturing & Services (January 3, 7)
Employment data (January 10)
International
Brazil:
The Brazilian real weakened due to concerns over government spending and fiscal deficit.
Confidence in Brazil’s budget targets is declining.
Key upcoming events:
Brazilian policy updates (all week)
Mexico inflation report (Monday)
Turkish Central Bank meeting (Thursday)
Interest Rates
The Federal Reserve (FOMC) cut interest rates by 0.25%, bringing total cuts to 1% since their peak.
Future rate reductions are expected to slow down.
Credit Markets
U.S. household net worth increased by $4.77 trillion in Q3, mostly due to strong stock market gains.
Federal Spending Outlook
Federal spending was $6.8 trillion in FY 2024.
The new government in 2025 may consider significant budget cuts.
