This Week In The Economy: Fed Hits Pause on Rate Cuts, US Consumer Confidence Down To Start The Year, Somewhat Elevated US Inflation, Global Central Bank Roundup

Welcome to a regular snapshot review of U.S. and international economic news that aims to 1) provide a window into the challenges and decisions facing businesses today, 2) determine the direction of economic policy — such as the speed at which central banks decide to raise interest rates, and 3) assess what the impact will be for consumers.

Federal Reserve Pauses Rate Cuts, Cites ‘Elevated’ Consumer Price Inflation

The Federal Reserve’s policymaking Federal Open Market Committee met this week and voted to leave interest rates unchanged, as the U.S. economy begins the year with an uncertain outlook, primarily due to the new administration’s threat to impose punitive tariffs on allies and foes alike.

“The unemployment rate has stabilized at a low level in recent months, and labor market conditions remain solid,” the FOMC said in its statement, however…