Ten Stories Moving the Market

Five Stories Moving the Market:

Economic activity increased in most parts of the U.S. and employment was mostly unchanged in recent weeks, according to the Federal Reserve’s Beige Book survey; the report overall appeared to be a modest upgrade compared with the last one – Bloomberg. (Why you should care – the report endorses recent policymaker comments that they can wait before cutting interest rates again)

Japan's wholesale inflation slowed on sliding fuel costs, according to Bank of Japan data; the corporate goods price index rose at a 2.4% annualized rate in December compared to 2.7% in November – Reuters. (Why you should care – the data could ease pressure on the central bank to keep raising interest rates)

The Bank of Korea held its seven-day repurchase rate at 2.5% for a fifth straight meeting; the board removed language about deciding “whether and when to implement any further Base Rate cuts” – Bloomberg. (Why you should care - the Bank of Korea appears to have moved to a more neutral monetary policy stance)

Federal Reserve Bank of Philadelphia President Anna Paulson reiterated her expectation that the central bank could lower short-term interest rates later this year if ​the economy meets her expectations of moderating inflation and job market stabilization – Reuters. (Why you should care – Paulson, an FOMC voter this year, expects annualized inflation growth could hit 2% later this year)

The cryptocurrency and banking industries are locked in a lobbying battle over digital tokens that yield annual payouts, a fight that threatens to derail legislation intended to bring crypto into mainstream finance – WSJ. (Why you should care – stablecoins that don’t pay a yield could boost margins for issuers who purchase the Treasurys backing the assets)

The New ​York Federal ‌Reserve's operations desk plans ‌to conduct about $45 billion in Treasury purchases over the next month; the break down is $15.4 billion in reinvestment ‍purchases and an additional $40 ‍billion in reserve ‌management ‌purchases between January 15 ⁠and ⁠February ​12 – NY Fed. (Why you should care – the bond purchases should weigh on short-term Treasury yields)

Federal Reserve Bank of ​Minneapolis President Neel Kashkari said he is optimistic about the economic outlook and expects inflation to ‌wane, but it is unclear by how much; Kashkari is a monetary policy voter this year – Reuters. (Why you should care – Kashkari’s comments suggest he’s unlikely to vote for a rate cut at the upcoming FOMC meeting)

U.S. existing home sales climbed in December to the fastest pace since 2023, a welcome sign for a housing market that has lacked momentum for several years; contract closings rose 5.1% to a 4.35 million annualized pace last month, according to the National Association of Realtors – Bloomberg. (Why you should care – declining mortgage rates are helping to spur purchases)

American consumers continued to spend and borrow at a healthy clip at the end of 2025, despite a year marked by uncertainty around job security, tariffs and stubborn inflation; executives from JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo all said that consumer as a whole remain resilient and appear to be in great shape – WSJ. (Why you should care – a resilient consumer should support steady economic growth moving forward)

Federal Reserve Governor Stephen Miran said the Trump administration’s deregulatory agenda offers the central bank an additional reason to continue lowering interest rates; he feels current deregulation efforts will boost competition, productivity, and domestic output potential, allowing for faster economic growth without putting upward pressure on inflation – Bloomberg. (Why you should care – Miran is the biggest dove at the central bank and is signaling he’ll vote in favor of a rate cut at the January 27-28 monetary policy meeting)

Economic Calendar:

Earnings: BLK, FHN, GS, JBHT, MS, TSM

Bank of Korea Monetary Policy Announcement (12 a.m.)

Japan – PPI for December (12 a.m.)

U.K. – Monthly GDP for November (2 a.m.)

U.K. – Trade Balance for November (2 a.m.)

France – CPI (Final) for December (2:45 a.m.)

ECB Economic Bulletin (4 a.m.)

ECB’s De Guindos (Vice President) Speaks (4 a.m.)

BOE Credit Conditions Survey (4:30 a.m.)

Eurozone – Industrial Production for November (5 a.m.)

Eurozone – Exports, Imports for November (5 a.m.)

ECB Meeting Minutes (7:30 a.m.)

U.S. – Export, Import Prices for November (8 a.m.)

U.S. - Initial Jobless Claims (8:30 a.m.)

U.S. - Continuing Claims (8:30 a.m.)

U.S. – NY Empire State Manufacturing Index for January (8:30 a.m.)

U.S. – Philadelphia Fed Manufacturing Index for January (8:30 a.m.)

Fed’s Bostic (Atlanta, Non‑voter) Speaks (8:35 a.m.)

Fed’s Barr (Board Member, Voter) Speaks (9:15 a.m.)

U.S. – Natural Gas Storage (10:30 a.m.)

U.S. – 4‑Week Bill Auction (11:30 a.m.)

U.S. – 8‑Week Bill Auction (11:30 a.m.)

Fed’s Barkin (Richmond, Non‑voter) Speaks (12:40 p.m.)

TIC Net Long‑Term Transactions for November (4 p.m.)

Fed's Balance Sheet Update (4:30 p.m.)