The Federal Reserve is expected to leave interest rates alone next week after receiving confirmation that inflation is still elevated (and the job market is still steady).
The Commerce Department reported Thursday that inflation ticked up to 2.8% in November while the Labor Department said new jobless claims were similarly little changed last week. In another sign of economic resilience, the Commerce Department also said that GDP increased in the third quarter of 2025 at its fastest pace in two years.
The Trump administration will gain some additional insight into how its economic agenda is playing with Americans when the University of Michigan releases its January consumer sentiment survey this morning. With interviews that ran through Monday, it should provide a preliminary look at how the president’s recent rollout of affordability measures has been hitting (though not the market fallout from Greenland).