Fed Under Pressure on Rates

Date: December 25, 2025

Fed Under Pressure on Rates

Summary

Market Snapshot

Prior Close
Asset Level Days Change
S&P 500 6,933.90 +0.35%
Nasdaq 23,613.31 +0.22%
Spot VIX 13.47 -3.79%
2 Year Bond Yield 3.51 -2 bps
10 Year Bond Yield 4.13 -4 bps
EUR/USD 1.1778 -0.02%
USD/JPY 155.93 -0.02%
GBP/USD 1.350 -0.01%
WTI Oil 58.38 +0.64%
Gold 4,480.84 -0.08%
Bitcoin 87,494.05 -0.13%

Prior Economic Events

Data Prior Cons Actual
MBA 30-Year Mortgage Rate6.38-6.31
Weekly Jobless Claims224,000223,000214,000

Upcoming Economic Events

Data Prior Cons Time
No events available

Yesterday's Recap

The MBA 30-Year Mortgage Rate edged down to 6.31% from 6.38%, reflecting improved housing affordability amid steady demand. Weekly Jobless Claims declined to 214k, surpassing the consensus estimate of 223k and the previous 224k, indicating underlying labor market strength. Markets traded calmly with VIX at 13.47, equities stable, and bond yields holding steady at 4.13% for 10-year Treasuries. The US dollar weakened slightly against EUR to 1.1778, while commodities like gold rose to 4480.84 and WTI oil held at 58.38.

The Day Ahead

With Christmas closures, no major economic data releases are scheduled for today, allowing markets to digest recent robust US growth signals. Investors will monitor for any geopolitical updates, particularly US-Venezuela tensions impacting oil prices. Thin trading volumes may amplify reactions to weekend news, potentially influencing early holiday positioning.

Other Economic Notes

Global political pressures on central banks, including Trump's stance against Fed independence, add uncertainty to monetary policy continuity. Broader inflation trends remain subdued, supporting consumer spending despite elevated housing costs.

Fed Watch

In the rate cutting cycle, recent data like lower jobless claims suggests fewer cuts may suffice, favoring a slower pace amid resilient activity. Trump's remarks on Fed chair selection introduce political risks, potentially tilting policy toward more easing if disagreement persists. Markets maintain dovish expectations for 2025 cuts, but hawkish data could prompt pauses if growth surprises continue.


Source: https://robomacro.com/Research_Notes/US_Macro_Daily_20251225.html