The U.S. economy experienced a slight to moderate uptick in activity towards the end of November and through December. Consumer spending saw a modest increase, with a robust holiday season exceeding expectations, as reported in the Federal Reserve's latest Beige Book. Vehicle sales also saw a slight rise, while construction activity generally declined, hampered by rising material and financing costs across several districts. Manufacturing output showed a net decrease, with some manufacturers preemptively increasing inventory due to anticipated tariff hikes.

Inflation Outlook: Chicago Fed's Goolsbee Sees Progress Amid Uncertainties

Austan Goolsbee, President of the Federal Reserve Bank of Chicago, expressed cautious optimism about inflation trends during the 2025 Midwest Economic Forecast Forum hosted by the Wisconsin Bankers Association. Goolsbee highlighted ongoing progress in managing inflation but cautioned about looming uncertainties. "I still see further progress, but we must keep a long-term perspective on inflation," he noted in a Q&A session, signaling a vigilant approach to economic policy adjustments.