Key Topics for this Month
As we step into Q2, it’s becoming increasingly clear that the economic outlook is still a balancing act—equal parts data-dependent and patience-testing.
Two key themes surfaced this past month:
- Mortgage rates refusing to budge, even as the Fed hints at policy loosening, and
- The American consumer showing signs of cautious optimism—though inflation and tariffs continue to hang around like guests who missed the hint to leave.
Let’s break it down.
What We’re Watching: Sticky Inflation, Tariffs, and Market Pressure. While markets remain hopeful for rate relief later this year, underlying inflation (especially in services) remains persistently sticky. Add in ongoing tariff discussions—particularly with China and sectors like electric vehicles and tech—and you’ve got a recipe for continued pressure on both margins and consumer prices. None of this spells doom, but it does signal that volatility and policy sensitivity will likely remain with us through the spring and into the summer.
Key Topics for This Month
Mortgage Rates: Still High, Still Defiant
Despite the Federal Reserve signaling potential rate cuts in the months ahead, mortgage rates haven’t exactly followed suit. Why? The answer lies in the bond market’s ongoing tug-of-war between inflation expectations, global uncertainty, and investor sentiment.
As detailed in this piece by Reuters, mortgage rates are driven less by what the Fed says, and more by what long-term bond yields do. And right now, yields are still reflecting a market that’s not convinced inflation is fully behind us. As a result, homebuyers hoping for immediate relief are still seeing rates hover well above comfortable territory.
PCE Report: Consumers Are Spending… But Carefully
February’s Personal Consumption Expenditures (PCE) report, the Fed’s preferred inflation gauge, came in with a mixed message: consumer spending is holding up, but not without hesitation.
As covered in this MSN article, spending trends suggest that while Americans are still opening their wallets, they’re increasingly mindful of where their dollars are going. Goods spending slowed, while services (particularly travel and entertainment) saw a bump—highlighting a shift in how people are choosing to navigate economic uncertainty.
The takeaway? The consumer isn’t retreating, but they’re definitely budgeting—responding to sticky inflation and market ambiguity with caution.
DISCLOSURES
LA Wealth Advisors is a DBA of Axxcess Wealth Management, LLC a Registered Investment Advisor with the SEC. Advisory services are only offered to clients or prospective clients where Axxcess and its representatives are properly licensed or exempt from licensure.
All information has been obtained from sources believed to be reliable, but its accuracy is not guaranteed. There is no representation or warranty as to the current accuracy, reliability or completeness of, nor liability for, decisions based on such information, and it should not be relied on as such.
The information provided is for educational and informational purposes only and does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor’s particular investment objectives, strategies, tax status or investment horizon. You should consult your attorney or tax advisor.
The views expressed in this commentary are subject to change based on market and other conditions. These documents may contain certain statements that may be deemed forward‐looking statements. Please note that any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected. Any projections, market outlooks, or estimates are based upon certain assumptions and should not be construed as indicative of actual events that will occur.
CONFIDENTIALITY NOTICE: This email may contain privileged or confidential information and is for the sole use of the intended recipient(s). Any unauthorized use or disclosure of this communication is prohibited. If you believe that you have received this email in error, please notify the sender immediately and delete it from your system.
NO OFFER OR SOLICITATION: The contents of this electronic mail message: (i) do not constitute an offer of securities or a solicitation of an offer to buy securities, and (ii) may not be relied upon in making an investment decision related to any investment offering by AWM. AWM does not warrant the accuracy or completeness of the information contained herein. Opinions are our current opinions and are subject to change without notice. Prices, quotes, rates are subject to change without notice. Generally, investments are NOT FDIC INSURED, NOT BANK GUARANTEED, and MAY LOSE VALUE.
LA Wealth Advisors, LLC, AWM, and AWM’s affiliated firms do not accept trading or money movement instructions via email.
AWM often communicates with its clients and prospective clients through electronic mail (“email”), short message service (“SMS”), and other electronic means. Your privacy and security are very important to us. AWM makes every effort to ensure that electronic communications do not contain sensitive information. We remind our clients and others not to send AWM private information over email. If you have sensitive data to deliver, we can provide secure means for such delivery.
All emails and business-related SMS communications are sent through systems that can be archived and monitored. Please contact us at www.axxcesswealth.com for our approved texting number. As a registered investment advisor, AWM emails and SMS communications may be subject to inspection by the Chief Compliance Officer (“CCO”) of AWM or the securities regulators. If you have any questions regarding our email policies, please Contact Us.