Growth is holding, inflation is moderating, and the labour market remains resilient; yet the composition of the data continues to matter more than the headline figure. January CPI rose 0.2% month-on-month and 2.4% year-on-year, down from 2.7% previously. Core CPI slowed to 2.5% year-on-year. Energy, particularly gasoline, was a key contributor to the softer headline inflation, while overall goods inflation remained contained. However, service categories persist, keeping core measures elevated…

Macro The past two weeks reinforced a defining feature of the current macro regime: geopolitics now feeds directly into economic expectations, even when headline risks fade quickly. The tariff standoff linked to Greenland de-escalated, but the episode highlighted how trade policy, security commitments, and political credibility are increasingly intertwined. That message was amplified at Davos, where discussions broadly converged on the idea that the post-Cold War, U.S.-led economic order is…

Macro Macro discussion this week was driven more by policy sequencing than data surprises, with several cross-currents converging. In the US, markets were fully prepared for a 25bp Fed cut, leaving the focus on Powell’s framing, the dot plot, and the credibility of a glide path toward neutral in 2026. While the decision delivered on market expectations, the vote split was notable, reinforcing internal debate over the pace of easing.…

Macro U.S. labour market data may be overstating underlying strength at a time when hiring momentum has already slowed materially. With reported job gains now close to stall speed, even relatively small statistical distortions can turn apparent growth into outright job losses, raising the risk that labour conditions are weaker than headline figures suggest. Model-based estimates used to account for business formation and closures have added to this uncertainty and…

Macro The BLS has now confirmed that there will be no October CPI or jobs report, and that the November CPI (18-Dec) and November payrolls (16-Dec) will be released after the December FOMC meeting. The Fed, therefore, enters one of the most consequential decisions of the year with no fresh inflation or unemployment data, leaving policymakers unusually dependent on partial indicators and internal models. The most complete labour information available…

Macro Hawkish Fed communication pushed December cut expectations back to essentially a coin flip, reversing the near certainty priced a month ago. Officials continue to stress caution, arguing that without reliable data, the bar for any near-term easing remains high. The shutdown has created a genuine data desert. October prints will be noisy or incomplete, and some underlying collections, especially in labour and price surveys, may be partially unrecoverable. As…