The American economy has entered 2025 with a strong head of steam,” Wells Fargo economists said. That's not necessarily a good thing for borrowers, who are waiting for the next Fed rate cut.

The Federal Reserve left interest rates unchanged on Wednesday, as the central bank turned cautious on further cuts amid a strong economy and uncertainty about inflation. The central bank’s decision to pause at its first meeting of 2025 followed a series of cuts that began in September to account for progress already made on getting inflation down.