• US existing home sales: 3.91m (vs 4.18m expected)
• US weekly initial jobless claims: 227K (vs 222K expected)
• US retail sales: 0.0% (vs +0.4% expected)
• US non-farm payrolls: +130K (vs +70K expected)
• US Core CPI MoM: +0.3% (in line with +0.3% expected; prior +0.2%)
• US Core CPI YoY: +2.5% (in line with +2.5% expected; prior +2.6%)
• UK Q4 GDP: +0.1% q/q (vs +0.2% expected)
• Japan PPI: +2.3% y/y (in line with expectations)
• China CPI: +0.2% y/y (vs +0.4% expected)
• Eurozone Q4 GDP: +0.3% q/q (in line with expectations)

Reserve Bank of Australia Assistant Governor Sarah Hunter said the labor market has stabilized but remains tight.

She noted that inflation is likely to stay above the 2–3% target range for some time. The recent easing in hiring reflects fewer vacancies rather than rising unemployment.

The message was clear: inflation pressures have not fully cooled, and further rate hikes cannot be ruled out if needed.

Comments from multiple Federal Reserve officials suggest policy is near neutral and cuts are not urgent.

Hammack: Inflation Not Under Control Yet

Beth Hammack said the fed funds rate is “right around neutral.” She warned inflation could remain near 3% this year and stressed it must move lower.

The labor market appears stable, with low hiring and low layoffs. She added that US government debt is on an unsustainable path and noted the surge in gold and metals may reflect inflation concerns.

Schmid: Urges Caution on Easing

Schmid cautioned that further rate cuts risk allowing inflation to persist.

He said current rates do not appear to be heavily restraining the economy. With inflation still close to 3%, he sees a case for keeping policy restrictive.

Demand remains firm relative to supply improvements, suggesting that underlying price pressures are not fully resolved.

Logan: Policy Near Neutral

Logan said that if inflation continues to ease and the labor market remains stable, additional rate cuts may not be needed.

She is more concerned about inflation staying elevated than about growth slowing. While cautiously optimistic, she is not fully convinced inflation is on a clear path back to 2%.

Overall, Fed communication this week points to patience.

European Central Bank Vice President Luis de Guindos said the recent appreciation in the euro deserves attention but is not dramatic.

The central bank does not target the exchange rate but monitors it closely. Current levels remain consistent with prior projections.

He described the economy as resilient, with inflation gradually moving toward target. Policy decisions will remain data-dependent, and uncertainty remains elevated.

• Apple shares fell 5%, marking the biggest one-day decline since April 2025.
• Nasdaq set for a third consecutive weekly decline as volatility picks up.
• Cisco slid 7% after issuing a weaker-than-expected forecast, despite beating earnings estimates.
• McDonald's reported earnings ahead of expectations, supported by strong value offerings.

Economic data was mixed, with softer retail and housing offset by stronger payrolls.

Central banks stayed cautious — the RBA flagged inflation risks, while the Fed signaled patience.

Markets saw increased volatility, reflecting uncertainty around growth, inflation, and policy direction.