The Globe and Mail reports in its Wednesday edition that U.S. retail sales increased more than expected in November as households stepped up purchases of motor vehicles and on-line merchandise, consistent with strong underlying momentum in the economy as the year winds down. A Reuters dispatch to The Globe says that a report from the Commerce Department on Tuesday had no impact on expectations that the Federal Reserve would cut interest rates on Wednesday for the third time since the U.S. central bank initiated its policy easing cycle in September. Fed officials started a two-day policy meeting on Tuesday. Signs of strong domestic demand added to warmer inflation readings in recent months in suggesting that the Fed could pause rate cuts in January. Policies planned by president-elect Donald Trump's incoming administration, including tariffs on imports and mass deportations of undocumented immigrants, are also seen complicating matters for the central bank. Retail sales jumped 0.7 per cent last month after an upwardly revised 0.5-per-cent gain in October. Strong household balance sheets, reflecting record stock market prices and high home prices, are also driving spending. Economists expect fewer rate cuts in 2025.