The PCE Index has aligned with expectations, and as the Federal Reserve’s preferred measure of inflation, it eases the sense of urgency for policy action. GDP data has also indicated continued economic growth, though this is tempered by future forecasts predicting a potential economic contraction. This outlook is further reflected in the Consumer Confidence report, which has shown a significant decline since the change in administration. Uncertainty is evident across lending and broader markets, affecting all aspects of the economy.

The most impactful report released last week was the regular Consumer Sentiment reports, which have indicated the more recent concerns rising food costs have soured the view on the current state of the economy for the U.S. The talks between the Federal Reserve members have also slanted in a negative direction as they feel they still do not have a strong grip on inflation. With the Trump administration also shaking things up in the office with their views on Tariffs, the land lending and broader markets have seen a lot of turmoil and uncertainty about the future. There should be dampened expectations going forward across all markets.

The major inflation data reports have been released, and the initial readings indicate that inflation has exceeded expectations. While the data suggests that the Federal Reserve is unlikely to allow any further rate cuts beyond those already implemented, optimism remains in the broader lending markets. This optimism is driven by expectations that the new administration may introduce changes to monetary policy in the longer term. Although inflation has come in higher than expected, it remains to be seen what next week’s PCE Index–the Federal Reserve’s preferred inflation indicator–will reveal.

Last week’s reports were plentiful, but few had a greater impact on the lending and broader markets. The most significant among them were the Nonfarm Payrolls, Consumer Credit, and Consumer Sentiment reports.

Last week’s reports were plentiful, but few had a greater impact on the lending and broader markets. The most significant among them were the Nonfarm Payrolls, Consumer Credit, and Consumer Sentiment reports.

The previous week’s reins were held by the Federal Reserve’s Rate Decision and also the preferred inflation indicator, the PCE Index. With the PCE Index coming in well above the Federal Reserve’s 2% target, it suggests that rate cuts may be postponed much longer this year than initially anticipated.

Looking ahead, the upcoming week features the CPI and PPI inflation data reports, making for a busy schedule. However, this week’s reports are relatively limited in terms of significant market impact. The most notable releases include Unemployment Data and U.S. Wages, both of which will complement the inflation data to provide a broader outlook on the economy’s trajectory. Additionally, the Consumer Sentiment and Consumer Credit reports may offer insight into consumer conditions amid a changing administration and ongoing inflation. Notably, inflation has had a strong impact on markets such as eggs and livestock poultry, which have reached all-time high prices in the past decade.