As every week, we bring you the main economic events that could influence your financial decisions.
This edition continues tracking the new U.S. trade tariffs, examines the persistence of elevated long-term Treasury yields, and highlights BlackRock’s record-breaking results—underscoring the global shift toward automated and diversified investing.
Our goal is to help you connect these developments with your financial plan and stay focused on decisions that strengthen your financial well-being.
New tariffs push prices higher and add inflation pressure
The U.S. government expanded tariffs on imports such as lumber, furniture, and other goods from China—a policy we’re closely monitoring for its direct effect on consumer prices. According to The New York Times, these measures raise the cost of basic materials and could complicate the Federal Reserve’s efforts to keep inflation in check.
The new costs will ripple through both households and businesses that rely on global supply chains. Economists warn that this policy may increase market volatility and slow down economic growth.
Why it matters: Tariffs raise the cost of living and squeeze profit margins for importing companies.
If you haven’t yet, check our blog for a breakdown of how trade adjustments can affect your wallet and how to keep your financial plan steady despite shifting conditions.
Finhabits Tip: Prioritize essential expenses and keep your automatic contributions consistent. Discipline and planning are your best defense against inflation.
Long-term treasury yields remain elevated
Despite expectations for rate cuts, long-term U.S. Treasury bonds continue offering high yields.
According to Reuters, persistent inflation, large fiscal deficits, and political tensions are limiting the Fed’s ability to ease credit costs. As a result, mortgage and personal loan rates remain high, affecting borrowers looking to buy homes or refinance debt.
This higher-rate environment may last longer than expected, reinforcing the need for disciplined saving and investing strategies.
Why it matters: Borrowing costs are likely to stay high, impacting family budgets and fixed-income returns.
Finhabits Tip: Avoid taking on long-term debt and keep your investment strategy diversified. Patience and balance are key to seizing opportunities without unnecessary risk.
BlackRock hits a record $13.46 trillion in assets under management
Reuters reports that BlackRock—the world’s largest asset manager—reached a historic record of $13.46 trillion in assets in the third quarter (Reuters).
This milestone reflects investors’ growing preference for low-cost, diversified options, especially amid economic uncertainty. The surge in ETFs confirms that automated, consistent strategies are increasingly replacing short-term speculation.
Why it matters: ETFs let you invest in hundreds of companies with a single move, helping reduce costs and risk.
Finhabits Tip: Make sure your portfolios include diversified ETFs. Learn more about how they work in our blog: What Are ETFs?
Also this week
JPMorgan Chase beats expectations with strong quarterly earnings
The Wall Street Journal reported a 16% increase in JPMorgan’s quarterly profits, driven by record trading and investment banking revenues. The bank showed resilience despite volatility and credit pressures.
Analysts caution, however, that reliance on market operations could make future results more volatile.
Why it matters: Bank performance is a key indicator of the economy’s overall health.
Finhabits Tip: If your funds have exposure to financials, stay focused on long-term performance and avoid reacting to quarterly swings.
U.S. timber giants announce merger, reshaping the lumber sector
Two of America’s largest timberland owners announced a merger aimed at cutting costs and strengthening market power, according to The Wall Street Journal. The consolidation seeks to offset tariffs and higher operating expenses.
This merger could drive up lumber prices and affect homebuilding and renovation costs.
Why it matters: Less competition can mean higher prices for essential materials.
Finhabits Tip: Review your indirect exposure to construction-related sectors and maintain a well-diversified portfolio.
Crypto market wipes out $19 billion in hours
A massive sell-off erased over $19 billion in crypto market value following new U.S.–China tech tariffs, according to The Wall Street Journal.
The drop exposed the fragility of the crypto ecosystem and its high exposure to leverage and global shocks. While some traders profited, most investors faced steep losses.
Why it matters: Extreme volatility remains a central risk in crypto markets.
Finhabits Tip: Stay informed about risks and focus your portfolio on regulated, diversified instruments.
Argentina rekindles dollarization debate
President Javier Milei reignited debate over officially dollarizing Argentina’s economy to curb chronic inflation, The Wall Street Journal reported.
While many Argentines already use U.S. dollars, full dollarization would mean giving up control of monetary policy.
Experts note that while the move might stabilize prices short term, it could also increase reliance on the U.S. financial system.
Why it matters: Monetary regime changes can affect currency values and investment flows.
Finhabits Tip: Global diversification helps protect against local crises and currency volatility.
The Federal Reserve faces a growth vs. inflation dilemma
The New York Times outlines the Fed’s dilemma: keep rates high to fight inflation or cut them to avoid a deeper slowdown. Political uncertainty and new tariffs complicate the outlook further.
Markets expect the Fed to maintain a cautious stance until clearer signs emerge on jobs and prices.
Why it matters: Fed decisions directly affect your loans, mortgages, and investments.
Finhabits Tip: Don’t adjust your strategy based on short-term expectations—stay the course and keep your automatic contributions steady.
Tips of the week
- Keep your automatic contributions active — compound growth rewards consistency.
- If you have variable-rate debt, consider refinancing or paying it down faster.
- Review your portfolio quarterly and avoid reacting to short-term headlines.
- Maintain 3–6 months of essential expenses in liquid reserves.
- Make sure your portfolios include diversified ETFs to strengthen your long-term strategy.
Sources:
- The New York Times – “Trump Ramps Up Trade War as New Tariffs on Lumber and Furniture Take Effect”
- Reuters – “Long-term Treasury Yields Stay Elevated Amid Inflation and Debt Pressures”
- Reuters – “BlackRock’s Assets Hit Record $13.46 Trillion on Market Rally”
- The Wall Street Journal – “JPMorgan Chase Q3 Earnings Beat Expectations”
- The Wall Street Journal – “Two Largest U.S. Timberland Owners Strike Merger”
- The Wall Street Journal – “A Historic Crypto Selloff Erased Over $19 Billion”
- The Wall Street Journal – “Argentina’s Peso-Dollarization Debate”
- The New York Times – “Federal Reserve’s Inflation Dilemma”
