📰 Weekly Economic & Finance Roundup

📌 This Week’s Key Highlights

1. GDP Growth Slows:
The U.S. reported Q1 GDP growth of just 1.2%, lower than expectations (2%). Consumer spending slowed sharply, raising concerns about a potential broader economic slowdown heading into the summer.

2. Inflation Pressures Persist:
The March PCE (Personal Consumption Expenditures) index came in hotter than expected, showing a 0.4% increase month-over-month. Core inflation remains sticky, reinforcing the likelihood of the Fed delaying any rate cuts.

3. Tech Earnings Disappoint:
Big tech companies (Meta, Microsoft, Google) posted mixed earnings results. While cloud services grew, advertising revenue slowed. Investors reacted cautiously, leading to volatility in the Nasdaq.

4. Housing Market Still Tight:
New data shows housing inventory remains historically low, and mortgage rates are hovering around 7%. Affordability continues to be a major challenge, especially for first-time buyers.

5. Student Loan Payments Impacting Spending:
A new Bank of America report found that consumer credit card spending has fallen among borrowers who resumed student loan payments, hinting at a broader impact on retail sales this quarter.

🔥 What to Watch Next Week

1. Federal Reserve Interest Rate Decision (May 1):
Markets are pricing in a pause at the next meeting, but the post-meeting press conference will be critical to gauge the Fed’s tone for the rest of the year. Any signal of "higher for longer" could rattle stocks and bonds.

2. April Jobs Report (May 3):
Watch closely: If hiring slows sharply or unemployment ticks up, it could confirm recession fears. If it remains strong, it gives the Fed more breathing room.

3. Earnings Season Continues:
Focus on consumer-focused companies like Amazon, McDonald’s, and Starbucks, whose earnings will show how spending behavior is shifting under inflation pressures.

4. U.S. Treasury Quarterly Refunding Announcement (May 1):
The government will announce how much debt it needs to issue. With deficits ballooning, bond yields could rise if auctions are large — impacting mortgage rates and stock valuations.

5. Geopolitical Risks:
The situation in the Middle East and rising tensions in the South China Sea remain market-sensitive headlines that could cause sudden volatility.

✨ Final Thoughts

With economic growth slowing, inflation stubborn, and interest rates staying high, it’s more important than ever to stay diversified, keep an emergency fund strong, and focus on long-term strategies.
We'll continue to track these shifts carefully and break down what they mean for your financial goals.

Stay smart, stay prepared,
— The Millennial Spending Team