Immigration and tariffs may make the cost of building a new home even more expensive – worsening the near-term affordability difficulties facing home buyers. First-time homeowners are currently at the lowest level ever.

The Federal Reserve Dual Mandate is to maintain stable inflation and low unemployment. Unfortunately, today’s economy is characterized by both increases in inflation and unemployment. Stagflation is when economic growth turns negative. Raising rates too fast could result in recession. Lowering them too quickly could result in inflation. Fed policy can address one – not both.

The Administration rolled out very aggressive “reciprocal” tariffs levied on 90 countries. If implemented, those tariffs would have raised the cost of cement imports entering the U.S. market by 19%. While the new tariff regime is a reduction from the initial concept, make no mistake, they will cause U.S. economic distress and adversely impact construction activity and cement consumption.

Even prior to tariff talks, evidence suggested that the economy was drifting to a slower growth path. Job growth has slowed. Economic uncertainty rising among consumers and businesses with many struggling to keep up with inflation. Defaults on credit cards, student loans, and mortgages are rising. This all paints a picture of a slowdown.

Recent evidence suggests the U.S. economy may be drifting toward a slower growth path - becoming fragile. While job numbers can be volatile, job growth is slowing and trend toward further weakening. There are signs consumer is struggling under the weight of inflation.