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According to a survey of 265 CFOs by Ampersand, bank deposit safety remains the top concern for financial executives, with 74% ranking it among their top three priorities. Despite regional bank failures over the past three years raising risk awareness, many companies still hold deposits exceeding FDIC insurance limits, and if their primary bank fails, the average operational runway is less than three months.

At its January 28 meeting, the Fed decided to keep the federal funds rate unchanged in the 3.5%-3.75% range, with two governors dissenting. Chair Powell stated that the economy is growing solidly and the unemployment rate is broadly stable, but inflation remains elevated, creating tension between the dual mandate. Markets are focused on the timing of future rate cuts.

According to the latest data from the U.S. Bureau of Economic Analysis, the Fed's preferred inflation gauge—the personal consumption expenditures (PCE) price index excluding food and energy—rose 2.8% year over year in November, below Fed officials' earlier forecast of 3% for 2025. Samuel Tombs, chief U.S. economist at Pantheon Macroeconomics, expects inflation to continue running below the committee's expectations. The market widely anticipates that the Fed will hold interest rates steady after its meeting concluding on January 28, but may cut rates once or twice during the year.

Data from the U.S. Census Bureau shows that retail sales rose 0.6% month-on-month in November, reversing the slight decline of the previous month, but consumer confidence remains suppressed by high prices and a weak job market. Atlanta Fed President Bostic believes the tariff shock has faded, and consumption may rebound in the coming months. Meanwhile, labor market data is weak, job growth has slowed, and low-income households are becoming more cautious in spending.

Data from the U.S. Bureau of Labor Statistics showed that December core CPI rose 0.2% month-over-month and 2.6% year-over-year, below expectations, reinforcing the Fed's recent policy stance focusing on the labor market rather than inflation pressures.

The Trump administration's investigation into Federal Reserve Chairman Powell has triggered strong backlash from bipartisan lawmakers and former Fed officials, who believe the move threatens central bank independence.

The pace of hiring by U.S. employers slowed significantly in December, with nonfarm payrolls increasing by only 50,000, far below market expectations. Although the unemployment rate edged down to 4.4%, it remains higher than the 4% level in January 2025. Federal Reserve officials expressed concern over the weakening labor market, and market expectations for the probability of holding interest rates unchanged at the January meeting rose to 95%.

The University of Michigan's consumer confidence index for December edged up to 52.9, but consumers' concerns about inflation and the job market persist. One-year inflation expectations fell to 4.2%, the lowest in 11 months. The unemployment rate rose to 4.6%, a four-year high. Federal Reserve officials indicated they are in no rush to further adjust monetary policy.

The U.S. Bureau of Labor Statistics reported on Thursday that the annual inflation rate unexpectedly fell to 2.7% in October, down from 3% in September, but the federal government shutdown led to six weeks of missing data. Core CPI rose 2.6% year-over-year, also lower than the previous value. Analysts caution that the data should be interpreted carefully, and the Fed's policy path remains uncertain.

Data released by the U.S. Bureau of Labor Statistics on Tuesday showed that the unemployment rate rose to 4.6% in October, the highest level in over four years, mainly as federal government layoffs announced in the spring began to take effect. Federal government employment fell by 162,000 and 6,000 in October and November, respectively, while employment in construction and healthcare increased. Wage growth slowed to 0.1% month-over-month, and retail sales were flat in October. The Federal Reserve cut interest rates by 25 basis points on December 10, but officials remain divided on the future policy path.