# Treasury Markets: Walking the Tightrope of Debt and Growth
In today's episode, we dive into the complex world of U.S. Treasury markets where investors are carefully recalibrating their expectations amid shifting economic signals. The latest Treasury report reveals GDP growth cooling to 1.6% in early 2025, significantly down from the 2.6% pace seen at the end of 2024. While unemployment holds steady at 4.3%, job creation has nearly stalled with just 29,000 new positions per month in the latest quarter.
Inflation continues to challenge the Fed's targets, with core PCE holding at 2.8% year-over-year, driven by tariff-influenced goods prices, though housing costs are finally showing signs of relief. The Federal Reserve's recent quarter-point rate cuts in September and October haven't guaranteed further easing, with the committee deeply divided on the path forward.
This content was created in partnership and with the help of Artificial Intelligence AI
