More people in D.C. are searching for 'criminal defence lawyer' than in any other state, and while that might sound dramatic, it’s just one of the many side effects of President Trump and Elon Musk’s bold push to shrink the federal workforce that not only costs the taxpayer but might also be riddled with corruption. With unemployment in the nation’s capital nearly doubling since Trump’s hiring freeze and Musk’s efficiency crusade, the ripple effects are starting to show—not just in job losses but in the local economy. For every federal worker who loses their job, experts estimate 2.3 private sector roles could vanish too, leaving businesses that rely on government spending scrambling to adapt. Critics argue this rapid downsizing risks wiping out decades of institutional knowledge, while supporters see it as a long-overdue shake-up of bloated bureaucracy. Although legal battles and union pushback slow the momentum, the big question remains as to the ability for D.C. to pivot to industries like tech and healthcare fast enough to cushion the blow.
EQUITY
Wall Street saw a muted trading week, staying on the sidelines waiting for the inflation report to start placing their bets. Tesla continues to bleed, losing 6% just today and 32% from peak, cornered by factors such as a bid on OpenAI, China's autonomous drive, and Musk's involvement in government operations. Corporate earnings saw McDonald's and Coca-Cola gap higher while chipmakers cheer for hopes of looser regulation after a comment by the vice president.
GOLD
Gold printed another record high, with strong physical demand and tariffs on commodities further supporting the need for gold as a store of value. Gold prices reached a high of $2,942 per ounce, just short of $3,000 previously forecasted, as investors now target $3,500 and beyond due to tariffs. Gold has since retreated from its high after Fed Chair Powell's comment in front of Congress, hovering around $2,888.
OIL
Crude oil benchmarks have been on the rise for the third session, showing signs of recovery after falling more than 12% from the mid-January high that was first achieved through tighter sanctions on Russian oil. It came even when U.S. crude inventory continued to stockpile higher, from 3.4 million to 8.6 million last week. IEA monthly reports are expected on Thursday to provide guidance for the energy market.
CURRENCY
The dollar is muted after closing lower on Fed Chair Powell's comment that the Federal Reserve will maintain the status quo for the time being with the economy staying strong. The incoming inflation report will confirm the direction, if any. The franc weakens ahead of its own inflationary report, while the yen continues to be battered over its rising bond yield. The Indian rupee started the week strong after its central bank cut its repo rates, although it could hurt local assets.
