Challenges and Headwinds Ahead for the U.S. and Mexico Economies

The U.S. economy is facing challenges such as divided opinions on interest rate hikes by Federal Reserve officials [215993fd], the impact of rising Treasury yields [aa833706], increasing corporate bankruptcies, a slowdown in the luxury rental market in Miami, ongoing labor disputes and conflicts [d4cd6b5f], and various other uncertainties [0d310e97] [ccc0e007] [fc20f609] [f8fea031] [0d6ea18b] [be7bd5d8] [4e6159d0] [3bd1db28] [4d9b5365] [818fe1d9]. On the other hand, Mexico's central bank is considering delaying interest rate cuts due to the strong local economy characterized by resilient consumption, low unemployment, and strong private investment [f8db4669]. Despite the strong economy, there are still challenges in reducing inflation and the GDP growth for 2023 may be lower than expected [f8db4669]. Mexico's economy is expected to expand by 3.5% or more this year [ed88207a]. The battle against inflation in Mexico is far from over [ed88207a]. The US is expected to unveil an artificial intelligence executive order [ed88207a]. Treasury Secretary Janet Yellen announced investments to boost lending to minority communities [ed88207a]. German defence contractor Rheinmetall reported strong profitability due to increased demand for weapons and ammunitions [ed88207a]. Unifor began talks with Stellantis [ed88207a]. More Americans faced food insecurity in 2022 [ed88207a]. Hedge fund manager Bill Ackman earned $200 million from a bet against US Treasury bonds [ed88207a]. The head of the International Monetary Fund warned of the economic impact of the war between Hamas and Israel [ed88207a]. The CEO of HSBC warned of a global reckoning on debt [ed88207a]. US President Joe Biden asked Israel to delay an invasion of Gaza [ed88207a]. The Federal Reserve's absence in the Treasury market is highlighted amid a selloff of longer-term Treasuries [ed88207a].