December housing starts and industrial production index released on January 17 will be updated in the next week’s CQM forecasts. Economic growth in 2024Q4 seems to have been solid at around 3%. As real final sales are forecasted to increase at 3.63% in 2024Q4 faster than real GDP in 2024Q4, December business inventories are the largest uncertainty. PCA forecasts real GDP to be 2.69%, a bit higher than the economic growth on the expenditure side of CQM, 2.50%. While the CQM forecasts show inflation stabilizing at 2.0% ~ 2.5%, the PCA forecast shows the GDP price deflator exceeding 3% and trending upwards. It is almost certain that the Fed will keep the policy interest rate unchanged at the FOMC meeting on January 28-29.