The Federal Reserve is concerned about uncertainty surrounding President Donald Trump and his policies, particularly on trade and immigration. Inflation remains a concern, although recent data shows signs of cooling. The labor market is experiencing slight changes, with slower payroll gains and a small increase in the unemployment rate. While the US economy is performing well for now, there are concerns about the eurozone, Mexico, and China. Investors are adjusting their expectations for rate cuts, and equity markets are optimistic. Bitcoin has fallen and bond yields in advanced economies fell due to weak data and expectations of rate cuts from foreign central banks. Central banks abroad, including Canada, Europe, Hong Kong, and Mexico, have cut rates, while Brazil has increased its rate to combat inflation. Borrowing costs in the US remain high, with credit card delinquencies rising. The Fed plans to reduce its holdings of Treasury securities and mortgage-backed assets and will closely monitor data before making further adjustments.



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