latest news in economy
Retail Sentiment Diverges from Market with Historic $176 Million Software Bet
New York, Saturday, 14 February 2026.
Defying a 33% sector downturn, retail investors channeled a record $176 million into the IGV ETF last month, marking an unprecedented divergence between individual sentiment and market performance.
January Inflation Slows to 2.4%, Yet Sticky Service Costs Signal Summer Rate Cut Delay
Washington D.C., Saturday, 14 February 2026.
The January 2026 Consumer Price Index (CPI) offers a mixed signal for the U.S. economy, rising just 0.2% for an annual rate of 2.4%—slightly below economists’ expectations. While falling gasoline prices and a significant 7% drop in egg costs provided consumer relief, underlying inflationary pressures remain stubborn. Core inflation, which excludes volatile food and energy sectors, rose 0.3% month-over-month, keeping the annual core rate at 2.5%. This persistence in service-sector costs suggests the Federal Reserve will see little urgency to resume interest rate cuts immediately. Although the headline numbers mark the slowest inflation pace since 2021, the “sticky” nature of core prices indicates the path to the Fed’s 2% target remains bumpy. Consequently, markets have shifted expectations for monetary easing, now looking toward June for the next potential rate cut rather than an immediate reprieve.
Strong January Job Gains Clash With Rising AI Disruption Fears
New York, Saturday, 14 February 2026.
U.S. markets are currently navigating a complex paradox where macroeconomic resilience meets sector-specific anxiety. While the January employment report delivered a surprise 130,000 new jobs—shattering expectations and lowering unemployment to 4.3%—investor sentiment remains fragile. This volatility stems from a growing fear that artificial intelligence is poised to dismantle traditional industries, overshadowing positive data on easing inflation. Crucially, the labor market’s apparent vigor is uneven, with gains heavily concentrated in healthcare, masking weakness in other sectors. This divergence between solid economic data and existential tech-sector dread has created a turbulent investment landscape, suggesting that while the economy isn’t breaking, the drivers of future growth are fundamentally shifting.
Russia Eyes Return to US Dollar in $12 Trillion Economic Pitch
Moscow, Friday, 13 February 2026.
Moscow confirmed a proposal on February 13 to restore US dollar settlements within a staggering $12 trillion economic framework. This potential partnership, contingent on a Ukraine peace deal, signals a major reversal of recent BRICS de-dollarization efforts and offers US firms renewed access to Russian energy markets.
UK Economy Misses 2025 Growth Forecasts as Construction Sector Hits Four-Year Low
London, Thursday, 12 February 2026.
The UK economy expanded by 1.3% in 2025, missing expectations as the fourth quarter stalled. While manufacturing grew, the dominant services sector flatlined and construction plummeted 2.1%—its worst performance in four years—highlighting the fragility of the recovery.
January Deficit Shrinks to $95 Billion as Tariff Revenues Soar
Washington, Thursday, 12 February 2026.
The U.S. deficit fell 26% to $95 billion in January as customs duties quadrupled to $27.7 billion. This tariff-driven revenue surge successfully outpaced spending growth, offering a temporary fiscal improvement.
Declining Population Growth Projected to Slash U.S. GDP by $100 Billion in 2026
Washington, Wednesday, 11 February 2026.
A sharp demographic slowdown is set to cost the U.S. economy $100 billion this year. Analysis reveals a “growth gap” of 1.4 million fewer residents will eliminate vital household spending, threatening 741,500 jobs and challenging the nation’s reliance on workforce expansion.
