The tasks market continues to soften as AI-fueled layoffs continue to increase. Meanwhile, the economy, which was thought to be rolling along, now seems sputtering, with Q4 2025 GDP revised to just 0.7% growth on Friday.
The other required, inflation, continued its upward trend on Friday, with core PCE increasing. Inflation could continue to increase as oil prices have actually pushed up near $100 a barrel, thanks to the Iran war.
Warsh confirmation on hold
Senator Thom Tillis, who is on the Banking Committee, guaranteed not to approve Trump’s pick for the brand-new Fed Chair, Kevin Warsh, until the investigation into Powell was ended. He labeled the continuous examination “ridiculous.”
Tillis said today that he hopes the administration will not appeal the ruling, as it would continue to postpone the confirmation of Warsh as the next Fed chair.
Next week’s Fed meeting is scheduled to be the next-to-last conference for Powell as Fed chair, but up until Warsh is approved, Powell would remain Fed chair.