The roots of current U.S. inflation can be traced back to unprecedented economic measures, spanning both the Trump and Biden administrations.

Think back to 2020. The pandemic-hit economy was tanking, and the federal government — under Trump — stepped in with massive stimulus packages.

Then, when Biden took office, the spending continued.

Even former Treasury Secretary Janet Yellen admitted this year that the Biden stimulus added “a little bit” to the inflation fire. (That’s an understatement.)

But she also pointed to the global supply-chain chaos as a major culprit.

Classic economics: Too much money chasing too few goods, and prices go up. All that stimulus money pumped up demand, but supply chains were wrecked.

It’s easy, of course, to point fingers now. But at the time, the goal was to keep the financial system from collapsing.

The thing is, inflation isn’t just some abstract number. It’s hitting people where it hurts, especially when it comes to housing.

Your Rundown for Friday, February 7, 2025...

A Scary Housing Market Signal

I saw a report yesterday that mortgage delinquencies are on the rise, especially among first-time homebuyers with FHA loans and veterans with VA loans.

Apparently, serious delinquencies are at a two-year high. That’s a scary signal.

Marina Walsh of the Mortgage Bankers Association says people are dealing with “inflationary pressures, lower personal savings rates, natural disasters” — basically a perfect storm of financial stressors.

And Americans with government-backed loans seem to be feeling the pinch most.

It’s not all doom and gloom, however. Foreclosures are still low because of forbearance programs. Plus, many homeowners have built up equity in their homes.

Still, the rise in delinquencies shouldn’t be ignored.

So, what’s the big picture? Simple: Inflation isn’t a quick fix. And it’s not a red versus blue issue either.

Instead, it’s a tangled web that started with emergency COVID measures, and it’s still unraveling today.

Moving forward, Trump’s administration will need to walk a tightrope, supporting the economy without pouring more fuel on the inflation fire. Which requires smart fiscal policies.

That said, the complex issue of inflation transcends politics and political parties. And it impacts everyday Americans in ways that hit uncomfortably close to home.

Market Rundown for Friday, Feb. 7, 2025

S&P 500 futures are down 0.10% to 6,100.

Oil is up 0.70% to $71.09 for a barrel of West Texas crude.

Gold is up 0.30% to $2,885.20 per ounce.

And Bitcoin is up 1.5% to $98,100.