The new administration plan to increase US supply of Oil are expected to cause oil prices to fall.

A significant driver of inflation is oil prices. Consider this: it impacts transportation—not just fueling your car but also delivering that Amazon package or taking a flight from Chicago to Palm Springs to escape the cold. It also affects the production of goods. In essence, oil influences almost everything. Even the electric vehicle in your garage depends on oil indirectly, as electricity must be generated from some source.

Another whew moment for the bond market was the lack of Tariffs on Canada and Mexico as Tariffs is seen as inflationary.

Bonds are currently trading at roughly 4.5%, give or take. The new administration aims to bring that down to 3.5%. It’s a delicate balancing act of tradeoffs. You can’t have your cake and eat it too, no matter how much you stomp your feet or hold your breath.

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