The Federal Reserve’s policy committee is in wait-and-see mode. The U.S. economy has entered 2025 with plenty of momentum, a briefly shaky labor market appears to have stabilized, and recent months’ inflation readings have been stubbornly above the Fed’s 2% annual target.

The Fed is expected to hold off on another rate cut at its Jan. 29 meeting. Here's what it means for your finances.

The president last week inserted himself into the debate over interest rates ahead of the central bank’s meeting this week.