The prospect of tariffs and of interest rates staying higher for longer will likely continue to push up the U.S. currency’s value in 2025.

The December rate cut was expected. But the Fed also reduced the number of expected rate cuts for 2025.

Construction is dependent on moderate interest rates. Restaurants are affected when consumer borrowing costs rise.

“We’re closer to the neutral rate, which is another reason to be cautious about further moves,” said Fed Chair Jerome Powell.

Tax cuts, tariffs and mass deportations could put upward pressure on prices — and interest rates.

High interest rates have held back investment in production. They’ve eased, but firms are wary of the effects of potential tariffs and tax cuts.

The National Association of Homebuilders reported its third straight month of improvement in its homebuilder confidence index, even though permits for new housing construction were down nearly 8% year over year.

On Thursday, Fed Chair Jerome Powell wouldn’t rule out an interest rate hike next year, though that’s not the plan at this point.

The rate cut follows a larger half-point reduction in September.

We’ll unpack what a Trump win means for stocks, bonds, tariffs, interest rates and more.