U.S. homebuilder sentiment edged up in December, but continues to reflect negative sentiment about the market outlook. Builder confidence for newly built single-family homes is 39 this month, well below the neutral 50 mark. “The recent easing of monetary policy should help builder loan conditions at the start of 2026,” said NAHB Chief Economist Robert Dietz. “However, builders continue to face supply-side headwinds, as regulatory costs and material prices remain stubbornly high. Rising inventory also has increased competition for newly built homes.”

Fed Governor Stephen Miran says that “phantom inflation” is distorting the US central bank’s policy decisions, causing it to keep interest rates too high. “We must be thoughtful in considering genuine underlying inflationary pressures,” he argues. “Excess measured inflation is unreflective of current supply-demand dynamics.”

Nearly half of US states are facing high recession risk, or are already in recession, according to analysis from Moody’s. Meanwhile, 16 states, including Texas and Kentucky, are expanding.

The U.S. has collected more $200 billion in tariffs this year from new duties imposed by President Trump since the beginning of 2025, according to Customs and Border Protection. The Supreme Court is set consider arguments that the new tariffs are illegal.

Ford Motor Company ends production of its all-electric F-150 Lightning electric pickup. The company said it will focus instead on hybrid vehicles and a future line of smaller, cheaper EVs.

The NY Fed Manufacturing Index fell back into negative terrain in December. The decline marks the end of several months of positive readings.

More people are using AI at work, according to a new Gallup poll. The percentage of U.S. employees who reported using AI at work at least a few times a year increased from 40% to 45% between the second and third quarters of 2025.

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