Get your sunglasses and beach towels ready because we’re about to dive into the scorching hot world of finance and economics this summer! In this week’s update, we’ll take a refreshing dip into the latest job figures, cool off with the surprising drop in home equity, sizzle with anticipation for the upcoming inflation report, and catch some rays while deciphering the Federal Reserve’s plans. It’s going to be a sizzling summer of economic surprises!

  1. Jobs: Riding the wave of employment last week, the Bureau of Labor Statistics (BLS) made waves with its report on job creation in June. While the 209,000 jobs created fell slightly short of expectations, it’s like catching the perfect wave on a sunny day. The job market knows how to keep us on our toes, delivering a mix of sun-soaked highs and refreshing dips!
  2. Home Equity: Making a splash with a cash-out refinancing dive into the world of home equity, where we’re witnessing an interesting phenomenon this season. CoreLogic’s home equity report for Q1 showed a 0.7% drop. But don’t worry, the sun is still shining on the housing market! This decline is attributed to many homeowners taking advantage of cash-out refinancing to make a big splash this summer. So, if your neighbor’s backyard suddenly looks like a tropical paradise, they’re probably using their home equity to fund their dream vacation!
  3. Inflation Preview: Get ready to feel the heat of the upcoming inflation report! The market anticipates a 0.3% reading for both the headline and core inflation this Wednesday. While these numbers may seem like a cooldown, keep in mind, they are replacing higher figures from last June. It’s like stepping onto a sizzling sand beach and feeling the cool water wash over your feet. So, while the bond market may react, the Federal Reserve is likely to keep its shades on, expecting to raise the Federal Funds rate again on July 26. It’s all part of the summer dance between markets and policymakers!
  4. The Fed’s Sun-Kissed Plans: Riding the Economic Waves Ah, the Federal Reserve—the surfers of the economic tides! Despite the forecast of a mild recession and easing inflation, they’re ready to catch some economic waves. During the June 14 Fed Meeting, they revealed their plan to hike interest rates two more times this year. It’s like catching the perfect wave and riding it to new heights. Their confidence in the economy has us wondering if they have some insider knowledge or if they’re just enjoying the summer vibes!

As we soak up the summer sun, and blazing AZ heat this week, keep an eye out for the Small Business Optimism Index, Mortgage Applications, CPI, PPI, Initial Jobless Claims, and the 10-year and 30-year UST note auctions. Just like a day at the beach, expect surprises and enjoy the ride! Remember to keep your sense of summer adventure, relax, and embrace the economic waves that lie ahead.