TechFlow news, according to Jinshi News, the Federal Reserve is expected to hold interest rates steady this week, giving itself more time to assess inflation and evaluate the impact of President Trump's policies on the economy.
The Fed has cut interest rates three times consecutively since September, lowering rates by a cumulative 1 percentage point. Currently, the Fed's benchmark interest rate range stands at 4.25% to 4.5%. Several policymakers have indicated they expect fewer rate cuts this year, as data show the U.S. economy performing robustly and inflation proving more persistent than anticipated. The December reading of the Fed’s preferred inflation gauge—the personal consumption expenditures price index—will be released Friday.
"The Fed will pause on rate cuts this week," said Gregory Daco, chief economist at EY. "They want to preserve as much optionality as possible for further adjustments to the federal funds rate this year."
