The surge in macro uncertainty related to tariffs, including the possibility of a global trade war, has complicated the Fed’s already difficult task of setting interest rates to accommodate an unknown future. The added complication of factoring in how White House policy will evolve, and how that will influence future inflation and economic activity, is about as challenging as it gets when the main tool is the blunt instrument of adjusting interest rates.
Daily Archives: March 19, 2025
Macro Briefing: 19 March 2025
US housing starts rebounded in February, but newly issued building permits — a leading indicator for residential construction — eased for a second month and fell 6.8% vs. the year-ago level. “January’s dramatic drop in housing starts, largely driven by exceptionally cold weather, reversed in February, but a decline in housing permits tempered the optimism. Looming tariffs are creating considerable uncertainty about construction costs, limiting activity,” advises Bloomberg Economics.
