Ken Peng of Citi Wealth believes that U.S. economic growth and inflation are not slowing down. He says that 2025's 75 BPS Federal Reserve rate cut, a possible reduction in tariffs following the Supreme Court decision and the AI story will keep the U.S. economy resilient in 2026.

Washington

Citi Wealth's latest macro outlook suggests that the U.S. economy will remain robust in 2026, buoyed by previous Federal Reserve rate cuts, tax reductions, and investments in domestic manufacturing. The report notes that inflation is unlikely to decline significantly, and large-cap stocks may benefit from these conditions.

Artificial intelligence continues to be a major investment theme, with strong demand for both hardware and software development. Additionally, Citi Wealth points to sustained global demand for gold, driven by ongoing geopolitical concerns, with both retail and institutional investors contributing to the trend.

Fed cuts and AI will keep U.S. economy resilient in 2026: Citi Wealth

How will you advise your clients to navigate in the markets this year because a lot of people are saying brace for volatility. It's the midterm election year. We don't know what the Supreme Court is going to say about the tariffs and obviously U.S. or China and all these other Greenland Venezuela stuff that we need to think about here. The lesson learned from 2025 is that you want to buy the dip. If you freaked out over the Rose Garden tariff announcement and sold out of the markets left the markets. Oh boy you would have been really depressed. How do you play the market in 2026. Yeah actually that's kind of the central tenet of our you know macro view reports just released. And so we basically think that's the U.S. economic growth and inflation are not coming down. Right. And you know we have 175 basis points records already and that's going to seep into the economy as we go through this year. The tax cuts last year is going to come in the tax returns. Maybe there's a little bit of that investing in U.S. manufacturing from all these trade deals. And I think finally this decision could bring effective tariff rates down. So all these things are likely to keep the U.S. economy very resilient. And so and so if that's the case then there's no real real real reason to expect inflation to come down substantially. So that's growth. And I think that broadens the potential for performance especially among large caps I think. And so so I think that's that's that's one point. The other point is that you know this A.I. story is still very much alive. Right. We're we're OK on the language part. We're doing well on the images and video part. We're still far from achieving the goals in terms of A.I. understanding actions zero latency as it relates to autonomous driving or surgeries. And so so so that part of the A.I. evolution requires a lot more hardware and software. So I think I think the demand for investment in that area is is still insatiable. So I my concern is more about more physical disruptions like you know are there going to be enough data centers. Are they going to have power to feed data centers. I don't think there's going to be a problem with finding money right either in the debt or the equity market because these big companies are generating such amazing cash flow. Right. So. So yeah I think I think that's that remains our favorite secular theme. But you know given this whole geopolitical thing I think we're adding the natural resource one on top of it. Yeah. Marty. Ken good to see you and believe it. Happy New Year. Listen a CIO. How are you feeling about gold right now. We're just a couple of bucks about one and a half percent away from record highs 4 5 5 6. What about this year. Yeah. So this is another. I mean it's related to the geopolitics. I think as we get more and more bouts of concern for geopolitics the gold demand is going to be still with us. I don't think this is a China story because you know we've looked at the data about like for example ETF flows half of the ETF flows into gold is coming from the US. So it's not it's a global story. It's a it's as much a retail story as that is for sovereign funds or institutions. So so I think I think that the demand for gold remains. I I don't think we're going to get another 50 percent a year. But but I think this this gold price is still very well supported.

The Senate on Thursday voted to advance a resolution that could limit President Trump's ability to continue military action in Venezuela without congressional approval. It comes as the president told the New York Times that he could see the U.S. having direct oversight of Venezuela for years.

Caracas

Venezuela Strikes

Trump says U.S. could have direct oversight in Venezuela for years

The crew at the International Space Station will return home early because of what NASA is calling a medical concern with a crew member. CBS News space consultant Bill Harwood has more details.

Texas

ISS crew returning due to medical issue for first time in NASA history

President Trump plans to meet with Colombian President Gustavo Petro after Mr. Trump issued threats following the U.S. operation in Venezuela that led to the capture of Nicolás Maduro. CBS News' Lilia Luciano reports from Bogotá.

Trump to meet Colombia’s Petro after tensions over Venezuela operation

The United Kingdom aided the U.S. in an operation to seize a sanctioned oil tanker linked to Venezuela in the North Atlantic. CBS News' Ramy Inocencio reports.

UK helped the U.S. seize an oil tanker linked to Venezuela

U.S. forces on Wednesday seized two oil tankers, one in the North Atlantic and the other in the Caribbean, as part of the Trump administration's blockade of Venezuela's oil exports. Secretary of State Marco Rubio said the U.S. will take between 30 million and 50 million barrels of oil and sell it in the marketplace.

U.S. to control money from Venezuela oil sales after tanker seizures

Nick Reiner was set to be arraigned on murder charges on Wednesday in the killing of his parents Rob and Michele Reiner. But his defense attorney, Alan Jackson, told the judge he could no longer represent the 32-year-old. After the hearing, Jackson said he couldn't say why he withdrew for legal reasons, but added, "Nick Reiner is not guilty of murder."

Los Angeles

Nick Reiner's lawyer withdraws from case, says Reiner 'is not guilty'

NASA is considering a rare early return of its crew from the International Space Station over an unspecified medical issue involving one of the astronauts, after canceling a planned spacewalk that had been scheduled for Thursday (January 8), the agency said.

NASA mulls early ISS crew return due to astronaut medical issue

Washington says it has intercepted two Venezuela-linked oil tankers in the Atlantic as part of President Trump’s hardline effort to control oil movements across the Americas, claiming the vessels were part of a so-called shadow fleet used to ship sanctioned crude from Venezuela and Iran.

UK helped U.S. military to seize sentenced oil tanker on way to Russia

Minneapolis erupts in protests after a woman is shot by a federal agent – Video of the incident sparks outrage nationwide.

Minneapolis

ICE shoots woman: Incident sparks protests across the U.S.

President Masoud Pezeshkian has urged security forces to show restraint, distinguishing peaceful protesters from armed rioters. However, rights group Iran Human Rights says at least 27 protesters have been killed, while Iranian media report 15 deaths, including members of the security forces.

Tehran

Iran police officer killed as cost-of-living protests enter 12th day

The decision comes as Trump approaches the first anniversary of his second term. Since returning to office, he has already moved to exit the World Health Organization, the Paris climate agreement, and UNESCO, while cutting funding to several UN bodies.

Trump orders U.S. withdrawal from 66 international organisations

Iran's army chief threatened pre-emptive military action on Wednesday over the "rhetoric" targeting the country, thought to be in reference to threats made by US President Donald Trump last week, warning that if Tehran "violently kills peaceful protesters," Washington would "come to their rescue."

Iran army chief threatens pre-emptive attack after Trump threats

U.S. forces have boarded a Venezuela-linked sanctioned oil tanker in the North Atlantic after pursuing it for weeks. The U.S. military also announced the seizure of a sanctioned tanker ship in the Caribbean Sea, the second vessel taken by American forces on Wednesday.

U.S. seizes two more sanctioned oil tankers with links to Venezuela

A woman was fatally shot by an ICE officer Wednesday morning in Minneapolis, the Department of Homeland Security says. CBS News' Nicole Sganga reports from the scene.

Protesters gather after ICE shoots and kills woman in Minneapolis

The U.S. seized a Russian-flagged oil tanker that was being shadowed by a Russian submarine on Wednesday (Jan. 7), after a more than two-week-long pursuit across the Atlantic as part of a U.S. "blockade" of Venezuelan oil exports.

U.S. seizes Venezuela-linked oil tanker after weeks-long pursuit

Nick Reiner, the son of Rob and Michele Reiner, is set to be arraigned in the killing of his parents, Rob Reiner and Michele Singer Reiner. It comes as details emerge about his time in custody and how his mental health history could play a role in his case.

Nick Reiner due in court on murder charges

Flights across France and Belgium and Eurostar train services have been severely disrupted by the winter weather.

Paris

Eurostar trains and hundreds of flights cancelled amid heavy snowfall

President Masoud Pezeshkian on Wednesday urged security forces to distinguish between what he called rioters and protesters, urging them not to target peaceful demonstrators.

Iran's President urges security forces not to target protesters

In Iran, protests that broke out on December 28th over the soaring cost of living look set to continue. Security forces fired tear gas at demonstrators in Tehran's Grand Bazaar on January 6: without giving numbers, Iran's IRNA news agency said 'some' people were arrested.

Death toll rises as Iran's security forces clash with protesters

Members of the North Atlantic Treaty Organization (NATO) are reacting to the Trump administration's comments on a potential Greenland takeover from Denmark.

Nuuk

European leaders blast Trump over Greenland takeover discussions

Donald Trump says Venezuela will hand over as much as 50 million barrels of oil and he will control the profits.

Trump says Venezuela will turn over 30-50 million barrels of oil

Britain and France have said they could send troops to Ukraine if a ceasefire is agreed. The pledge came at a Paris meeting of 30 nations, including the US, on security guarantees demanded by Kyiv before any peace deal.

London

Ukraine Invasion

UK, France ready to deploy troops in Ukraine after ceasefire

Colombian President Gustavo Petro said he would “take up arms” in the face of threats issued by US President Donald Trump.

Bogotá

Colombia vows to defend its sovereignty amid Trump’s military threats

Israeli forces storm Birzeit University in the occupied West Bank soon after students begin a sit-in in solidarity with jailed Palestinians.

Jerusalem

Middle East Conflict

Israeli school assault wounds dozens of Palestinians in West Bank raid

The White House says U.S. President Donald Trump and his team are considering a range of options in efforts to acquire Greenland as the ouster of Venezuelan leader Nicolás Maduro continues to reverberate in the Western Hemisphere.

Trump sees acquiring Greenland as a national security priority

The United States for the first time backed a broad coalition of Ukraine's allies in vowing to provide security guarantees that leaders said would include binding commitments to support the country if it is attacked by Russia again.

U.S. backs security guarantees for Ukraine at summit of Kyiv's allies

South African President Cyril Ramaphosa has expressed deep concern over recent U.S. military action in Venezuela, calling for the immediate release of Venezuelan President Nicolás Maduro and his wife.

Soweto

Ramaphosa urges UN action after U.S. capture of Maduro

At least 25 people have been killed in Iran during the first nine days of protests that started in the bazaar of Tehran over the plunging value of the currency and soaring inflation, according to rights groups. This video contains graphic images.

Rights groups say at least 25 dead in Iran protests

The administration of President Donald Trump is planning to meet with executives from U.S. oil companies later this week to discuss boosting Venezuelan oil production after U.S. forces ousted its leader Nicolas Maduro, according to a source familiar with the matter.

Trump administration sets meetings with oil firms on Venezuela: source

Uncertainty in Venezuela has crossed into neighboring Colombia, especially after U.S. President Donald Trump suggested Colombian President Gustavo Petro could face U.S. action following the capture of Nicolás Maduro.

Breakdown