#inflation

#inflation

If 2025 has taught investors anything about investing, it's that the markets have a mind of their own. Even when the bulls appear to dominate, the bears have had the fortitude to wrestle back control, leaving the markets in flux and investors scrambling to keep up. While perks like 2026 COLA increases can help, high yield ETFs could take you further ahead.

The dollar could remain under pressure, as it hovers near multi-week lows, and could extend last week's losses, as markets continue to expect additional interest rate cuts. The latter could continue to weigh on the greenback and US treasury yields. Attention now turns to a dense macro calendar that could define market direction in the weeks ahead. Tuesday's release of delayed nonfarm payrolls data for October and November will be closely scrutinised for confirmation of labour market cooling.

UK GDP declined marginally by 0.1% in October, reflecting an economy that is stable but still unable to build meaningful forwards momentum. The UK is neither sliding into a clear downturn nor generating the lift needed to move into a firmer, sustainable expansion phase. Across the main sectors, October's picture is uneven. Manufacturing and construction continue to feel the weight of higher borrowing costs and muted global demand, while improvements in consumer-facing services remain hesitant despite easing inflation.

Most people would probably be thrilled to reach the age of 50 with $3 million and a $1 million house. But this Reddit poster is having doubts about how well they're actually doing. And while that might seem surprising, the reality is that $3 million doesn't automatically guarantee financial freedom in today's economy, not when rising costs, longer lifespans, and shifting expectations can make even a large nest egg feel surprisingly fragile.

I wanted to ask you about how the higher-income households are really driving spending right now that are backed by home equity and stock market wealth, but lower-income consumers are really struggling with the accumulation of five years now of rising prices. It's price levels, not really the inflation rate, holding some of these families back. How sustainable is this so-called K-shaped economy?

In a tense and unusually divided meeting, the U.S. Federal Reserve decided to cut interest rates by 0.25 percentage points to a range of 3.5% to 3.75%. This is the third consecutive rate cut since September, as concerns about a deteriorating labor market outweigh fears of rising inflation. The final meeting of the year also yielded new economic forecasts and offered some clues about the Fed's roadmap for 2026.

KAITLAN COLLINS: Tonight, President Trump is on the road, in Pennsylvania, trying to alleviate anxious Americans' concerns that the economic state of what's happening here in the United States that they feel is overblown, and that because of his policies, as the President put it tonight, the economy is roaring. (BEGIN VIDEO CLIP) DONALD TRUMP, PRESIDENT, UNITED STATES OF AMERICA: We're bringing those prices down rapidly. Lower prices, bigger paychecks. You're getting lower prices, bigger paychecks.

The Trump administration is one of the most anti-labor administrations in modern U.S. history - it has attempted to decertify the union representation of more than 1 million federal employees. Trump has also fired key members of the National Labor Relations Board, thus rendering it largely non-functional. Moreover his administration has come out against rules requiring disabled workers all be paid at least the federal minimum wage of $7.25 per hour, and it has blocked a Biden-era rule increasing the minimum wage for federal contractors.

In the Politico interview, Trump said: I inherited a mess. I inherited a total mess. Prices were at an all-time high when I came in. He also told Politico: If you think of gasoline a gallon, they had it at $4.50, almost $5.00. You go to some of the states, you had it at $6.00. We hit, uh, three states two days ago, $1.99 a gallon.

The cost of home insurance in the United States rose by ~89% between 2014 and 2025, as rapidly climbing home prices, more frequent extreme weather events and inflation impacted insurers and homeowners. ICE analysts share key insights from their recent 10-year study into the forces propelling rising insurance costs across the nation. Over the past decade, home insurance costs have risen rapidly in many parts of the United States.

Catch up quick: Trump issued an executive order Saturday directing the Justice Department and Federal Trade Commission to establish task forces on anti-competitive behavior in the food supply chain. The order specifically directs them to look at "whether control of food-related industries by foreign entities is increasing the cost of food products in the United States or creating a national or economic security threat to Americans." The task forces are expected to brief congressional leaders within six months.