The economy overall is weaker than widely anticipated, says Jim Paulsen

• January Consumer Price Index (CPI) year-over-year was +2.4% vs. +2.5% est., with month-over-month at +0.2% vs. +0.3% est. CPI ex-food & energy m/m was +0.3% vs. +0.3% est.
• Mark Zandi notes that inflation is still on the high side, especially for necessities, but is not accelerating. He believes that without tariffs and heavy-handed immigration policy, inflation would be closer to the Fed's 2% target.
• Jim Paulsen asserts that the economy is weaker than perceived, with inflation being a temporary, COVID-related supply distortion that is now benign and will weaken further. He anticipates the Fed will be compelled to ease monetary policy.
• Peter Navarro states there is 'no basis in fact' for reports of reducing steel and aluminum tariffs, reiterating the administration's 'no exemptions, no exclusions' rule for these materials, which he calls 'sacred'.

Economists Mark Zandi and Jim Paulsen discuss current inflation data and the state of the economy. Paulsen argues that inflation is not a long-term issue and the economy is weaker than widely anticipated, suggesting the Fed will be forced to ease. Peter Navarro denies reports of plans to reduce steel and aluminum tariffs, emphasizing the administration's stance of 'no exemptions, no exclusions' for these 'sacred' materials.