UK consumer spending rose at the fastest pace in two years last month, helping to soothe concerns about the nation’s stagnant economic growth, two surveys show.

• Total retail sales increased by 2.6% year on year in January, against a growth rate of 1.2% in January 2024, per the British Retail Consortium (BRC).

The US Fed has not indicated a clear path as to if, and when,it might cut rates again.  Their latest forecasts from December suggested the committee viewed two cuts this year and two next was the most likely path forward.  

• Mr. Trump’s focus on raising tariffs, lowering taxes and reducing regulations could keep growth and inflation higher, per ING Bank.
• Right now analysts are expecting two rates in the second half of the year.