The U.S. economy grew more than expected in the final months of 2021, fueled by growing inventories and rising consumer spending. Quarterly GDP growth was the strongest in more than a year, though durable goods orders posted their first decline in three months. The economy is boasting strong signs for American workers, with jobless claims declining for the first time in four weeks and unemployment at pre-pandemic levels. U.S. futures rose as data signaled a strengthening recovery, but a stock rally driven by dip buyers fizzled out as Tesla and a few others weighed heavily on the market. —Natasha Solo-Lyons

Bloomberg is tracking the coronavirus pandemic and the progress of global vaccination efforts.

Jerome Powell began what could potentially be the biggest and fastest tightening of global monetary policy in years.His hawkish shift included not ruling out U.S. rate hikes at every meeting for the rest of 2022. Traders are bracing for higher borrowing costs, with money markets now expecting almost five interest-rate increases from the Federal Reserve this year and another four from the Bank of England. As for what’s really causing inflation, some are alleging price-gouging by huge consumer companies.

Jerome Powell, chairman of the U.S. Federal Reserve. Photographer: Graeme Jennings/Washington Examiner

But Goldman Sachs President John Waldron delivered an unusually blunt critique of the Fed, telling pension fund managers that its independence has been damaged in recent years and that it has lost credibility in markets. 

Dip buyers disappeared as a stock rally evaporated and traders assessed rate hikes. Tesla tumbled 12% amid supply-chain troubles.Apple posted record quarterly sales that sailed past Wall Street estimates, a sign it was able to work through its supply-chain crunch. Here’s your markets wrap. 

Chinese authorities are considering a proposal to break up China Evergrande by selling the bulk of its assets. Just how did the developer—now more than $300 billion in debt—China’s broader real estate industry and officials in Beijing let it all get this far? This is how it all happened.

Pfizer’s Covid-19 pill received backing from the European Union’s drug regulator, offering a tool to potentially ease burden on hospitals. Denmark said the virus is no longer a threat to society, while Germany saw another surge in cases. Hong Kong, where Covid policies are some of the strictest in the world, is reducing quarantine for inbound travelers to 14 days. Here’s the latest on the pandemic.

U.S. President Joe Biden and Supreme Court Justice Stephen Breyer formally announced Breyer’s retirement, clearing the way for Biden’s first nomination to the high court. With the open seat, Biden said he will fulfill a campaign pledge to nominate the first Black woman justice. And Democrats can confirm Breyer’s successor without GOP help. 

Justice Stephen Breyer, right, at the White House with President Joe Biden on Jan. 27. Photographer: Yuri Gripas/Abaca

Biden and Ukrainian President Volodymyr Zelenskiy are expected to speak Friday amid the looming threat from Russia. President Vladimir Putin has floated the possibility of sending more arms to separatist proxies fighting in Donbas while Western allies continue to reject his demands (after he massed 120,000 troops on Ukraine’s border) that Ukraine be barred from ever joining NATO, and that NATO forces largely retreat from Eastern Europe. Though Putin’s aides have repeatedly pooh-poohed the conclusion that the forces arrayed around Ukraine are there to attack, Ukraine’s ports are very much at risk if they do. The global confrontation triggered by Putin is already impacting oil, with Brent rising to the highest level since 2014. Here’s the latest on the crisis.

• Bloomberg Opinion: Russia’s wealth isn’t unreachable.
• Putin backs a proposal to tax and regulate crypto mining.
• Texas Governor Abbott is turning to Bitcoin miners.
• U.S. mortgage rates dipped for the first time in a month.
• When New York City public housing goes private, it can get worse.
• JPMorgan executives ousted in a $200 million probe found new jobs.
• A chunk of Elon Musk’s SpaceX rocket will crash into the moon.

  LaGuardia’s Terminal B Is Done After $4 Billion

  New York City’s LaGuardia Airport Terminal B and brand new American Airlines wing is  fully completed, marking the end of a near six-year revamp. Including 35 gates, a parking garage, skybridge, nearly 50 new shops, restaurants and more, the new terminal is valued at $4 billion, making it the largest public-private partnership in U.S. aviation history. “We have literally gone from worst to best,” said Governor Kathy Hochul, who referred to the renovation as “long overdue.”

  

  Travelers pass through Terminal B of LaGuardia Airport in New York City Dec. 21.  Photographer: Victor J. Blue/Bloomberg

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