The US economic recovery continued through 2024, but inflation progress has stalled above 2% and the labor market has significantly cooled. Despite the FOMC lowering interest rates by 100bp this year, Fed officials and financial markets head into 2025 uncertain about the pace and magnitude of any future rate cuts. Republicans won back control of the White House and majorities in both halls of Congress, creating a path to significant federal policy changes over at least the next two years. In this episode, we talk with FHN Financial’s Chief Economist Chris Low and Senior Economist Sophia Kearney-Lederman about the key macroeconomic developments this year, what surprised us the most in 2024, and what we’ll be looking out for in 2025.