A government holiday followed by an extremely light release schedule has led to a limited amount of data, with the FOMC Minutes being the only impactful report for the prior week. The Federal Reserve had stated they will continue to maintain their current stance in light of the most recent inflation data. With rates holding into the year, as a result, lending partners have started back tracking some of their recent rate cuts. Lastly, Unemployment Numbers are seen to be well within expectations.

Last week’s release of CPI and PPI resulted in slightly higher than expected inflation rates which led to speculation that the Federal Reserve’s decision to cut rates will likely come much further in the year than anticipated. There was some suspicion that if inflation rates would continue to exceed predictions, it could result in another rate hike. Lending partners have responded in kind with the first significant increase in lending rates since the end of November. However, The Federal Reserve will likely maintain its current stance.

Next week is the release of Core CPI and PPI numbers for January, resulting in an extremely light week for the week. The only data release of note is the trade deficit and the usual unemployment reports. The current trade deficit for the U.S. is operating precisely within expectations and correlating GDP numbers. Next week will provide further guidance for the Federal Reserve as the next release of inflation data is released.