The past week delivered a mix of economic developments that range from encouraging to downright puzzling. Let's break down what happened and why it matters.

Trump Blinks on Tariffs

President Donald Trump's decision to dial back certain tariffs represents what economist Justin Wolfers calls a "remarkable admission" that his trade policies have been driving up prices. Wolfers, who teaches at the University of Michigan and serves as a Senior Fellow at the Brookings Institution, argues the selective rollbacks show the administration privately understands basic economics, even while publicly minimizing inflation concerns. The move to combat soaring consumer costs essentially confirms what critics have been saying all along: tariffs raise prices for American consumers.

The Housing Market Gets Weird

Something unusual is happening in real estate, and it's making analysts nervous. For the first time in 54 years, new single-family homes are selling for less than existing homes on average. The Kobeissi Letter flagged this anomaly on Thursday, declaring "the US housing market is broken." This pricing flip hasn't occurred in over half a century, and economists worry it signals deeper structural problems in the market. When the normal order of things inverts like this, it's worth paying attention.

Bitcoin's Bad Month, Silver's Good One

Economist Peter Schiff, a longtime Bitcoin (BTC) skeptic, pointed out an interesting divergence on Friday: Bitcoin and silver are moving like mirror images. While silver climbed 16.5% in November, Bitcoin dropped 17.5%. Schiff highlighted this stark contrast as evidence of shifting market dynamics between traditional precious metals and cryptocurrency.

Credit Crunch Intensifies

Getting approved for credit is getting harder. According to New York Federal Reserve data highlighted by The Kobeissi Letter, the overall rejection rate for U.S. credit applications has climbed to 24.8% over the past 12 months. That's the highest level since tracking began in 2014, meaning roughly one in four applications now get rejected. Credit is tightening across the board, and it's showing up in the data in a big way.

December Rate Cut Looking Likely

Goldman Sachs (GS) is maintaining its call for a December rate cut as cracks appear in the labor market. Chief economist Jan Hatzius said Monday that the delayed September jobs report "may have sealed a 25bp cut at the December 9–10 FOMC meeting," especially after New York Fed President John Williams signaled support for "a further adjustment in the near term." Goldman is urging investors to stay overweight equities and buy dips ahead of what they expect will be continued policy easing into 2026.

These stories paint a picture of an economy in transition, with policymakers adjusting to new realities and markets responding in sometimes unexpected ways. Keep watching these trends as we head into the final stretch of the year.