Overview

• The U.S. economy grew by 2.8% in 2024, with Q4 growth revised up to 2.4%, according to the Bureau of Economic Analysis' final estimate.
• Corporate profits surged by $204.7 billion in Q4 2024, marking a sharp rebound after a decline in the previous quarter.
• The Trump administration's newly announced tariffs on Mexico and Canada have introduced economic uncertainty, dampening business and consumer sentiment.
• Economists warn of a potential contraction in Q1 2025, citing trade policy uncertainty and adverse weather conditions, with growth estimates below 1.5%.
• The Federal Reserve has kept interest rates steady, reflecting caution over the uncertain economic environment and potential risks to growth.