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The inaugural week of Trump’s presidency reminded markets how quickly sentiment can shift. The looming threat of tariffs could raise costs for businesses and consumers on both sides of the border.

This article analyzes the U.S. economy in 2024. That year, the economy grew at an annualized rate of 3.1%, with consumption and other multiple fields providing support, while residential investment and imports were unfavorable. The labor market rebounded in November after being impacted, with changes in employment and wages. The earnings per share in Q3 increased, and industry performances varied. Lower interest rates benefited many industries. There was an inflation situation in November. The Federal Reserve cut interest rates at the end of the year with a hawkish stance. There are risks of geopolitical tensions and economic slowdown, and investment trends are diversified.

The highlights of Canada and U.S.

The Federal Reserve Open Market Committee (FOMC) cut the federal funds rate to the 4.25% to 4.50% range and announced it would continue its balance sheet runoff.

Headline CPI inflation cooled to 1.9% year-on-year (y/y) in November, one tick softer than expected.

Retail sales rose 0.7% month-on-month (m/m) in November, an acceleration from the upwardly revised October’s gain of 0.5%, and ahead of the consensus forecast calling for an increase of 0.6% m/m.

The highlights of U.S. and Canada.

The Canadian consumer was also in the spotlight as retail sales surged and the Federal government announced big stimulus measures to further support spending.

Headline CPI inflation increased in October to 2.0% year-on-year (y/y), above expectations for a 1.9% y/y print and up from the 1.6% y/y reading from September.