The Fed's preferred inflation gauge exceeded expectations in May. Meanwhile, the housing market saw soft home sales, although annual home prices continued their rise in April.

Due to ongoing economic uncertainty, the Federal Reserve has decided to keep its benchmark Federal Funds Rate unchanged. This environment has also contributed to a slowdown in both the construction and retail sectors. Additionally, unemployment claims are trending higher.

Consumer and wholesale inflation data was softer than anticipated in May. However, less encouraging news comes from rising unemployment claims, which indicate continued difficulties in the job market.

Recent labor sector data indicates signs of a softening job market, while appreciation reports highlight the strong returns that homeownership can offer.

The Federal Reserve's preferred inflation gauge moved closer to their 2% target, showing progress on price stability. In the housing sector, there was a significant drop in contract signing for existing homes, though home values continue to demonstrate solid year-over-year growth.

Housing showed mixed signals in April, with existing home closings disappointing while new home contracts hit a three-year high. Job market data revealed similar contrasts: new unemployment claims remained low, but ongoing claims reached their second highest level since late 2021.

Inflation came in lower than anticipated in April, indicating that tariff effects haven't fully appeared in economic data yet. Meanwhile, home builder confidence has dropped this spring amid economic uncertainty, with construction activity showing a slowdown.

The Federal Reserve maintained its pause on interest rate cuts, taking a cautious "wait and see" approach amid ongoing uncertainty about tariff impacts. Meanwhile, housing markets nationwide continue to show price increases, while job seekers are encountering more difficulties.

Economic updates last week revealed that the labor market showed some weakness, first quarter economic growth contracted, the Fed's preferred inflation measure slowed, and home prices continued their upward trajectory.

Home sales showed mixed results for new and existing properties in March, while the Federal Reserve's latest Beige Book highlights how trade policy uncertainty is affecting businesses nationwide.

Fed Chair Jerome Powell warned of a possible "challenging scenario" on the horizon. Meanwhile, retail sales in March saw a boost from consumers making purchases before tariffs took effect. At the same time, home builders remain cautious amid ongoing economic uncertainty.

While inflation came in lower than anticipated in March, this positive development was overshadowed by ongoing news about trade tariffs.

March saw stronger-than-expected job growth, but the labor sector continues to deliver mixed messages. However, this news was overshadowed by the announcement of reciprocal tariffs.