Key Events Around the Globe: Jan 12

Two Fed Officials Say Key to Fixing US Housing More About Supply Than Financing

Two Federal Reserve officials expressed some skepticism that a Trump administration plan to lower housing costs by buying billions in mortgage-backed bonds will do much to lift the troubled sector.

The policymakers – Atlanta Fed President Raphael Bostic and Richmond Fed President Thomas Barkin – instead argued that while financing costs are a real issue, housing affordability is even more a function of the supply of homes available for purchase.

US Consumer Sentiment Perks up in Early January

US consumer sentiment perked up in early January, but households continued to worry about inflation and a weakening labor market, a survey showed.

The University of Michigan’s Surveys of Consumers said its Consumer Sentiment Index increased to 54.0 this month from a final reading of 52.9 in December. Economists polled by Reuters had forecast the index rising to 53.5.

The survey’s measure of consumer expectations for inflation over the next year was unchanged at 4.2% this month. Consumers’ expectations for inflation over the next five years increased to 3.4% from 3.2% last month.

Brazil Inflation Eases to 4.3% in December, Opening Door For Rate Cut

Brazil’s inflation rate eased to 4.3% year-over-year in December, down from 4.5% in November, potentially creating room for an interest rate cut at the upcoming Copom meeting. The December inflation figure matched both analyst expectations and the LSEG consensus, marking the lowest reading since August 2024.

A breakdown of the data revealed that food inflation dropped significantly from 3.9% year-over year to 2.9%, reaching its lowest level in almost two years. Clothing prices also experienced a sharp decline during the month.

These moderating inflation pressures could influence the Brazilian central bank’s monetary policy decision at its meeting later in January.

Canada Job Creation Pauses After Hiring Surge, Unemployment Rate Rises

Canada created just 8,200 net new jobs in December after three months of outsize gains and the unemployment rate rose to 6.8% from 6.5% as more people searched for work, Statistics Canada said.

Analysts polled by Reuters had expected a net loss of 5,000 positions and the jobless rate to edge up to 6.6%. The economy had added a total of 181,000 new jobs from September through November, in contrast to almost no change in the first eight months when U.S. tariffs and trade uncertainty choked hiring. There were 1.55 million people unemployed in December, an increase of 72,900, or 4.9%, from November

Source: HSL Prime Daily, 12 Jan 2026

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