US consumer inflation sped up in December, rising 2.9% vs. the year-ago level. The faster pace marks the third straight month that the consumer price index at the headline level picked up. The current rate is the highest since July. The core rate of CPI, by contrast, ticked lower to 3.2%, which is holding within a tight 3%-plus range that’s prevailed recently. “When you step back and look at the overall state of inflation, we’re not really going anywhere,” says Sarah House, senior economist at Wells Fargo. “While there has been progress, the pace has been really disappointing.”
The average 30-year mortgage rate in the US last week topped 7% for the first time in eight months. The average contract rate edged up to 7.09%, marking the fifth straight weekly rise.
China’s dominance of global manufacturing is stronger than ever ahead of President-elect Trump’s plans to impose higher tariffs. China’s share of global industry output is around 27%, up from 24% in 2018, according to United Nations data. “By 2030, the UN predicts, China’s share of industry will have risen to 45%—a level of dominance unmatched since the US’s postwar manufacturing heyday or the UK’s in the 19th century,” reports The Wall Street Journal.
Net income surged 50% in the fourth quarter for JP Morgan, a bellwether for the US banking industry. Citigroup, Wells Fargo and Goldman Sachs also posted strong results. “Businesses are more optimistic about the economy, and they are encouraged by expectations for a more pro-growth agenda and improved collaboration between government and business,” says JP Morgan CEO Jamie Dimon.
Pension funds are testing the waters with bitcoin investments. Among the US pension leaders investing in this space: the states of Wisconsin and Michigan. The State of Wisconsin Investment Board was recently the 12th biggest shareholder in BlackRock’s bitcoin ETF at the end of September, worth about worth about $155 million; Michigan was the sixth-largest shareholder in Grayscale’s ethereum ETF, with roughly $12.9 million at the end of September, reports the Financial Times.
The US 10-year Treasury yield fell sharply on Wednesday after the release of consumer inflation data for December. “After recent red-hot data, [December’s] softer than expected core CPI reading should help cool fears of a reacceleration in inflation,” says Tina Adatia, head of fixed income client portfolio management at Goldman Sachs Asset Management.
