Author: Money Mechanics

The U.S. Bureau of Labor Statistics released its belated November report on December 18th. December 2025 inflation data reveals moderating inflation. But the FED is easing, which could result in inflationary pressures later in 2026. Calculated to two digits, inflation was  2.74% in November, down from 3.01% in September.  There was no October number due to the government shutdown.  The December 2025 inflation report shows that U.S. consumer prices continued to moderate at the end of the year, with the Consumer Price Index (CPI) rising modestly compared to the previous year. After months of mixed data and reporting gaps tied…

From NAR: “Existing-home sales increased for the third straight month due to lower mortgage rates this autumn,” said NAR Chief Economist Lawrence Yun. “However, inventory growth is beginning to stall.”My central theme for existing home sales has always been that the bar is so low that we can trip over it. Meaning it doesn’t take much to grow sales here, but it typically happens when mortgage rates head lower, and especially when mortgage rates head toward 6%. 2025 sales data looks normal to me with that mindset. In fact, purchase application data has had its best 20 weeks of the year…

This WeekWe got some major data releases this week, but they all came with a big ol’ asterisk. (And AI spending remained a focus.)The economy lost 105,000 jobs* in October and gained 64,000 in November.*DOGE’s deferred resignations, which paid workers through September, drove a 162,000 decline in federal employment.The unemployment rate rose more than expected to 4.6%** in November from 4.4% in September.**Likely boosted by the government shutdown since 75% of the increase in unemployment was from “temporary layoffs” – the category for furloughed federal workers.Retail sales were flat*** in October.***Spending on autos fell 1.6% m/m after the September expiration…

Key Takeaways The median household income for ages 35–44 was $86,473, according to the latest Federal Reserve data. That’s just behind 45–54-year-olds.Income varies widely across groups, with homeowners and college graduates earning more than renters and those without a degree.Income is only part of the equation—tracking net worth provides a clearer view of your financial health and long-term stability. Household income—and wealth—shift significantly with age. Data from the Federal Reserve’s Survey of Consumer Finances show that families typically see earnings and assets rise through midlife. For households ages 35–44, this is a key stage for building financial strength. Understanding how…

Key Takeaways AI stocks surged Friday, in what could point to renewed confidence in the sector after a string of positive news.UBS analysts said that while the AI trade has pulled back in recent weeks, they remain bullish on the sector’s growth. Are investors ready to pile back into the AI trade? Tech stocks led the major indexes higher Friday, with many AI investor favorites among the top performers, in what could be a sign of renewed confidence in the sector. Shares of cloud computing giant Oracle (ORCL), which slumped recently amid worries about its dependence on a few big…

Key Takeaways Grocery prices have climbed during President Donald Trump’s administration, contrary to his claim this week that they are “falling rapidly.”Although overall food prices are rising, they are doing so more slowly than they did earlier in the year. President Donald Trump says grocery prices are “falling rapidly” under his economic policies, but the government’s own data says otherwise.On Wednesday evening, Trump took to the airways to defend his economic policies, responding to criticism from Democrats and others that the cost of living has risen too quickly under his administration, and has been exacerbated by his tariff campaign. Trump…

Key Takeaways Giving to charity isn’t just a nice thing to do—it can also provide meaningful tax benefits. Effective strategies include donating profitable investments and using a donor-advised fund. Alternatively, if you’re 70 ½ or older, you can transfer funds from your IRA to a qualified charity. Helping others is always rewarding, and it can be even more impactful when done strategically. By donating to an IRS-qualified 501(c)(3) public charity, you may be able to reduce your taxable income. And if you do it smartly, you can maximize the benefits not only for yourself but for your recipient, as well.…

Key Takeaways Gen X expects to fall more than $400,000 short of what they think they’ll need for a comfortable retirement. This gap stems from the shift away from pensions toward 401(k)s, which left Gen X without many of the automatic 401(k) features younger workers rely on today. Of all the generations, Gen X faces the largest retirement savings shortfall, a recent survey by asset management company Shroders finds. While this generation, which was born between 1965 and 1980, thinks they’ll need more than $1.1 million to retire comfortably, they expect to retire with roughly $712,000 saved, leaving a shortfall…

(Image credit: Getty Images)Stocks finished the week on a positive note as volume thins ahead of two holiday-shortened weeks. But Friday’s gains weren’t enough for one of the main market indexes to erase its weekly deficit.At the close, the blue-chip Dow Jones Industrial Average was up 0.4% at 48,134, the broader S&P 500 was 0.9% higher at 6,834, and the tech-heavy Nasdaq Composite rose 1.3% to 23,307. While the Dow and S&P 500 managed weekly wins, the Nasdaq ended the week down 0.7%.The tech sector saw the biggest gains on Friday, as measured by the State Street Technology Select Sector…

Key Takeaways The Federal Reserve cut interest rates earlier this month. But so far, yields on several cash options haven’t budged, meaning you can still earn a historically high return. Top high-yield savings accounts pay as much as 5.00%, while the best CDs let you lock in rates up to 4.50% APY. Brokerage and robo-advisor cash accounts continue to offer attractive yields in the 3% range, while U.S. Treasuries pay up to 4.82% for investors seeking stability. See Today’s Best Cash Yields—All in One Chart With the new year soon upon us, many savers are taking a fresh look at…