The US economy remained at a comfortable cruising speed in the final stretch of 2024, powered by healthy consumer spending and creating even more separation from its global counterparts.Most Read from BloombergWhat Happened to Hanging Out on the Street?

The Federal Reserve's first meeting of 2025 in the coming week stands to test the resurgence in U.S. stocks as investors gauge the extent of more equity-friendly interest rate cuts in the months ahead.

The Federal Reserve will hold its first policy meeting of the year on Jan. 28 and 29, where it is widely expected to keep interest rates right where they are after cutting three times since September.

The Fed’s challenge this week is how to pause and communicate a data-dependent approach to future cuts without drawing the ire of Trump, who has expressed his desire for rates to come down. “The goal will be to make as least amount of news as possible as they pause, which is well televised,” KPMG chief economist Diane Swonk said.

As mentioned, mortgage rates haven't fallen in line with the Fed's rate cuts because they depend on factors beyond the agency's benchmark rate, such as the economy and 10-year Treasury bond yields. For example, when the 10-year treasury rate goes up, mortgage rates tend to follow, and vice-versa.

Fears of elevated interest rates dampened the mood on Wall Street at the start of this year–but cooling core inflation and dovish comments by Federal Reserve governor Christopher Waller have given investors reason to feel a bit more cheerful this week.

Banks have reported slower loan growth amid strong earnings, Tesla to raise Canadian car prices, and more news to start your day.

President Donald Trump’s demands of lower interest rates are running into a Federal Reserve that has already dialed back its expectations about cutting rates and an economy that has