{"id":58479,"date":"2026-02-13T15:08:35","date_gmt":"2026-02-13T19:08:35","guid":{"rendered":"https:\/\/stockmarketwatch.com\/stock-market-news\/trump-affirms-nato-ties-as-macron-pursues-european-nuclear-autonomy-amid-cooling-inflation\/58479\/"},"modified":"2026-02-13T15:08:35","modified_gmt":"2026-02-13T19:08:35","slug":"trump-affirms-nato-ties-as-macron-pursues-european-nuclear-autonomy-amid-cooling-inflation","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/trump-affirms-nato-ties-as-macron-pursues-european-nuclear-autonomy-amid-cooling-inflation\/58479\/","title":{"rendered":"Trump Affirms NATO Ties as Macron Pursues European Nuclear Autonomy Amid Cooling Inflation"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>U.S. inflation fell to a nearly five-year low of 2.4% in January<\/strong>, allowing the Trump administration to claim a definitive victory over the post-pandemic &quot;inflation crisis.&quot;<\/li>\n<li><strong>President Trump reiterated that the U.S. maintains a &quot;good relationship&quot; with NATO<\/strong>, easing immediate trans-Atlantic fears despite his administration&#39;s recent &quot;stepping back&quot; from traditional leadership roles.<\/li>\n<li><strong>French President Emmanuel Macron and German Chancellor Friedrich Merz have initiated talks on a &quot;European nuclear shield,&quot;<\/strong> a historic shift toward strategic autonomy as the U.S. nuclear umbrella faces renewed uncertainty.<\/li>\n<li><strong>The New York Fed&#39;s Standing Repo Facility (SRF) reported $0 in usage<\/strong>, signaling that the high-stress liquidity environment seen at the end of 2025 has fully stabilized.<\/li>\n<li><strong>Donald Trump bolstered Michael Whatley\u2019s North Carolina Senate campaign<\/strong>, praising the former RNC chair as a &quot;conservative champion&quot; ahead of the critical March primary.<\/li>\n<\/ul>\n<h2>Geopolitics: NATO and the European Security Redesign<\/h2>\n<p>President <strong>Donald Trump<\/strong> reaffirmed on Friday that the United States maintains a <strong>&quot;good relationship&quot; with NATO<\/strong>, a statement aimed at stabilizing the alliance following a year of heightened tension. Despite the rhetoric, the administration has notably shifted its posture, with <strong>Defense Secretary Pete Hegseth<\/strong> skipping recent ministerial meetings in Brussels and the U.S. handing over command of key naval structures in Naples and Norfolk to European leadership. <em>The move is seen by many as a deliberate &quot;de-prioritization&quot; of European security in favor of domestic and Indo-Pacific interests.<\/em><\/p>\n<p>Simultaneously, French President <strong>Emmanuel Macron<\/strong> called for a total redesign of the <strong>European security architecture<\/strong>, asserting that the continent must move toward &quot;strategic autonomy.&quot; Macron confirmed he is in active dialogue with German Chancellor <strong>Friedrich Merz<\/strong> and other allies regarding the development of a <strong>European nuclear deterrent<\/strong>. This initiative follows the expiration of the <strong>New START treaty<\/strong> on February 5, 2026, which has left Europe feeling precarious as the traditional U.S. nuclear shield becomes less certain.<\/p>\n<p>Defense contractors saw mixed reactions to the news of European autonomy; while U.S. giants like Lockheed Martin (<a href=\"\/stock\/LMT\">LMT<\/a>) and Northrop Grumman (<a href=\"\/stock\/NOC\">NOC<\/a>) remain primary suppliers, <em>the push for independent European procurement could favor domestic firms like Thales or Airbus in the long term.<\/em> German Chancellor Merz emphasized that while NATO remains a &quot;competitive advantage&quot; for the U.S., Europe is now &quot;doing its part&quot; by rapidly increasing defense spending and military integration.<\/p>\n<h2>Economy: Inflation Hits Five-Year Low<\/h2>\n<p>The <strong>Bureau of Labor Statistics<\/strong> reported Friday that the <strong>Consumer Price Index (CPI)<\/strong> rose just <strong>2.4% on an annual basis in January<\/strong>, the slowest pace of inflation since May 2021. President Trump seized on the data, stating that <strong>&quot;inflation and product costs are way down&quot;<\/strong> and claiming his &quot;America First&quot; agenda has successfully defeated the price surges of the previous administration. <em>Market analysts noted that the decline was driven largely by a 7.5% drop in gasoline prices and significant cooling in the used car and egg markets.<\/em><\/p>\n<p>However, the report was not without warnings; economists noted that <strong>tariffs<\/strong> are beginning to exert upward pressure on the costs of furniture, appliances, and auto parts. While the headline figure beat expectations of 2.5%, core inflation\u2014which excludes food and energy\u2014remains slightly higher at <strong>2.5%<\/strong>. Investors in the SPDR <a href=\"https:\/\/stockmarketwatch.com\/indices\/sp500\/today\" data-internallinksmanager029f6b8e52c=\"3\" title=\"snp500 today\">S&amp;P 500<\/a> ETF Trust (<a href=\"\/stock\/SPY\">SPY<\/a>) responded positively to the news, as the cooling data increases the probability of <strong>Federal Reserve interest rate cuts<\/strong> by June 2026.<\/p>\n<h2>Monetary Policy: NY Fed Reports Stable Liquidity<\/h2>\n<p>In a sign of stabilizing financial markets, the <strong>Federal Reserve Bank of New York<\/strong> accepted <strong>$0 billion of $0 billion<\/strong> submitted to its <strong>Standing Repo Facility (SRF)<\/strong> on Friday. This marks a significant departure from the liquidity turmoil seen at the end of 2025, when banks tapped the facility for a record <strong>$74.6 billion<\/strong> on December 31. <em>The lack of bids suggests that the &quot;liquidity crunch&quot; feared by many analysts has dissolved, and the banking system is currently operating with ample overnight reserves.<\/em><\/p>\n<p>The <strong>Standing Repo Facility<\/strong> serves as a backstop to keep the federal funds rate within its target range by allowing banks to swap Treasuries for cash. The current zero-usage level indicates that private market repo rates are trading below the Fed&#39;s offer rate, signaling healthy private-sector lending. <em>Policymakers view this as a &quot;mission accomplished&quot; moment for the SRF in its role as a safety valve for the financial system.<\/em><\/p>\n<h2>Politics: Trump Endorses Whatley in North Carolina<\/h2>\n<p>On the domestic front, <strong>Donald Trump<\/strong> reiterated his &quot;complete and total endorsement&quot; of <strong>Michael Whatley<\/strong> for the U.S. Senate in North Carolina. Speaking to supporters, Trump praised the former RNC Chairman as a &quot;loyal ally&quot; who would be essential in advancing the &quot;America First&quot; agenda in Washington. Whatley is currently the frontrunner in the <strong>GOP primary scheduled for March 3, 2026<\/strong>, where he faces several challengers including Don Brown.<\/p>\n<p>The North Carolina race is expected to be one of the most expensive and closely watched contests of the 2026 midterm elections. Democrats are expected to field former Governor <strong>Roy Cooper<\/strong>, setting up a high-stakes battle for a seat being vacated by retiring Republican <strong>Thom Tillis<\/strong>. <em>Trump\u2019s endorsement is viewed as a &quot;seal of approval&quot; for primary voters, though some strategists warn it could be a liability in a general election if the president&#39;s approval ratings remain polarized.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways U.S. inflation fell to a nearly five-year low of 2.4% in January, allowing the Trump administration to claim 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