GCA Forums News: National Headline News Summary — Thursday, 24 April 2025.

Once Again, All The Markets Rallied Sharply Today: The Dow Jones Gained, Just Like Everything Else.

As highlighted in the report published in X, a pressurized cloud erupted off the Dow Jones Industrial Average, which soared over 200 points today to settle at around 39,186.98, achieving a 2.66% gain. S&P 500 also experienced an increase of 2.51% and now stands at 5,287.76, while Nasdaq increased by 2.71% and is now at 16,300.42. An explosion of new optimism by retailers continued to splash throughout the market after President Trump soothed investors’ minds by stating that he indeed had no intention to sack Jerome Powell, who had stirred the markets with his potential dismissal plans yesterday. The markets had calmed down dramatically after the uproar caused by the idea of Powell being let go.

Demand is complementary to the ongoing economic uncertainty, with gold prices rocketing by 1.2% to roughly $2,650 per ounce and silver increasing by 1.5% to now rest at 31.20. At the same time, the fifteen-year US Treasury reported that its yield was sitting at 4.25%, suggesting interest rates may remain steady or increase more than they are now. Other sectors like tech and energy helped the rally while the increased crude oil price, which improved by 2% to $72 per barrel, supported energy stocks.

The Fight Over Interest Rates Between Powell and Trump

President Trump has gone on the offensive against Jerome Powell, chair of the Federal Reserve, over interest rates. He claims that not decreasing interest rates harms the economy, particularly in real estate and business investment. On X, some users have expressed their displeasure at how Trump taunted the markets, suggesting psyching up Powell’s firing, which led to a brief freefall in the dollar value and other indices earlier this week. During the past week, the markets have been calmed by Trump’s statements that he will not try to remove Powell immediately.

The Federal Reserve has maintained its benchmark rate at 4.75%–5.00%. Powell blamed the persistent inflationary pressures, echoed by Bank of America’s prediction of no rate cuts in 2025. Speculation about Powell’s security looms tough, as no smoke leads to accusations that Trump’s plan is to dismantle the Federal Reserve. That would need Congress, and despite X rumors of “Fake news” circulating, it is very far from reality. The Fed remains primarily focused on managing inflation on one side and stimulating economic growth on the other. The next meeting should provide further insight into the central bank’s outlook for 2025.

CPI, GDP, and Unemployment: Economic Indicators

The Consumer Price Index (CPI) projected year-over-year inflation at 3.2% in March 2025. This was a dip from February’s CPI of 3.4%, leading analysts to predict inflation in Q2 2025 to reach 2.8%. Economists speculate that consumers tend to claw back spending during the slow recovery period after inflation peaks, and thus, a slow recovery is reassuring. The American economy grew at a 3.2% annualized rate in Q4 2024 and is forecasted to grow at 2.8% in Q1 2025. Economic growth during Q4 2024 led to increased consumer spending, which has proven troubling given the soaring borrowing costs. The unrestricted rate of unemployed Americans remains unchanged at 3.8%, but continues to stagnate among job seekers and new position openings. This perpetuates the freeze on construction and manufacturing jobs, both sensitive to interest rate hikes, further stalling the employment expansion.

The real estate and housing market

A 30-year fixed mortgage at 7.1% currently comes with terribly high mortgage rates compared to historical standards. This, coupled with slow home inventory, severely hampered purchasing. The National Association of Realtors indicates a decline in existing home sales by 3.2%; however, the median selling price rose by 4.8% to $410,000.

The 18% office space vacancy created by people working from home is causing headaches for commercial real estate. However, we’ve noted resiliency in the industrial and retail sectors.

Business and Funding Environment

As a result of the persistently high interest rates, business funding still encounters obstacles. Lending for credit and commercial mortgages became more restrained as banks tightened up loaning to office and retail spaces. There, however, is strong residential mortgage lending from high-income earners, while first-time buyers are still struggling. Venture capital and private equity activity also hit, focusing mainly on technology and green energy. It is expected to fall 10% in deal volume from 2025 to 2024.

Trump’s Tariff Policies

The proposed tariffs have caused a stir, especially the steep 20% rise in imports. The Wall Street Journal dubbed it an “economic policy blunder,” claiming increased consumer costs and critical supply chain bottlenecks. While domestic producers are optimistic, the automotive and manufacturing sectors will suffer increased operational costs. The overall impact of the tariffs is highly dependent on their execution, which is expected in Q2 2025.

Automotive Trends

The automotive sector shows mixed performance. Car sales, including SUVs and trucks, rose 2% year-to-date, driven by demand for hybrid models. Exotic car sales remain robust, with brands like Ferrari reporting 5% growth, catering to affluent buyers. Motorcycle sales are flat, while commercial vehicle and fleet sales grew 3%, supported by logistics demand. High interest rates and rising production costs due to potential tariffs pose challenges, particularly for imported vehicles.

Pam Bondi and the Ombudsman of the Efficiency Government Department

Some Republicans and Trump fans flag US Attorney Pam Bondi for not chasing down “deep state” perpetrators conspiring in Russian Collusion and fraud involving a Government of Efficiency Review (DOGER) perpetrated by Elon Musk and Vivek Ramaswamy. Some social media Brandon users criticize her for appearing on Fox News for her frequent spots. However, Bondi’s office concentrates on prominent ones, claiming multiple active investigations without public arrest announcements. She’s reportedly “not on the way out,” but public scrutiny could push her condition to shift her trajectory.

Sanctuary Cities: Chicago and Illinois

Pritzker and Johnson are gathering attention for their policies regarding sanctuary cities as an immigration enforcement initiative begins to take shape. Johnson’s budget balances progressive aims with unchecked migration, levying some fiscal responsibility on Johnson through migrant-funded services. While serving in the deficit spending, Pritzker faces pressure from suburban and downstate constituents, Pritzker is pressed to defend Chicago’s sanctuary status. Users on X are divided: some ascribe the city’s actions as void of humanity, while others praise the management of overloaded resources.

While the rest of America maintains a steady economic situation, high interest rates, political tensions, and import fees present a complicated reality. With Trump’s softened comments on Powell, the market seems to thrive, but real estate and businesses are stuck battling affordability and funding struggles. The pace Bondi sets for prosecutorial sanctuary city policies is making him increasingly out of touch with the rest of the world, and the stark divide further demonstrates this. GCA Forum News continues its tracking for our viewers, members, and sponsors.

https://www.youtube.com/watch?v=-2v4DJkxNoQ&list=PLo3dZB8Cn9Qt3V6o_CS5ws3K-RBr5ZGoA