In addition, Trump renewed talk of tariffs on Tuesday and said he would punish Denmark if it does not give up Greenland’s sovereignty. Both import tariffs – which would fuel inflation – and geopolitical uncertainty could add volatility this year. For now, however, the strength of the economy is likely to have a positive impact on corporate profits.

“The Fed had already warned that there would likely only be two cuts this year, down from four forecast in September, but speculation is rife that this could be reduced to just one if price pressures continue,” said Susannah Streeter, Head of Monetary and Currency Markets at Hargreaves Lansdown.

Futures for the Dow Jones Industrial Average fell less than or 0.1%. Contracts tied to the S&P 500 also fell less than 0.1%, as did futures tracking the tech-heavy Nasdaq 100. All three indexes fell on Tuesday, with the S&P ending the day down 1.1%.

Minutes from the Fed’s December meeting could have an impact on markets today. The stock market will be closed tomorrow in memory of President Jimmy Carter.