Reuters survey: Trump policies raise inflation concerns, Federal Reserve expected to remain inactive in January

Odaily Planet Daily News: According to a Reuters survey, the Federal Reserve will keep interest rates unchanged on January 29th and will cut rates again in March. Decision makers are digesting a series of new economic policies expected to be introduced in Washington. The survey also shows that persistent inflationary pressures may only lead the Federal Reserve to cut interest rates again. Concerns about Trump's promises, from comprehensive tariffs and extended tax cuts to deporting illegal immigrants, have led to a significant increase in US bond yields before he took office. The already strong economic outlook and the future interest rate path of the Federal Reserve will depend on how well the new administration fulfills these commitments. 103 economists surveyed all expect the FOMC to maintain the key interest rate at 4.25% -4.50% at its meeting on January 28-29, with nearly 60% expecting the Federal Reserve to cut interest rates in March. 65 out of 102 economists expect to cut interest rates twice or less this year. The survey also shows that by the end of 2025, the federal funds rate will be between 3.75% and 4.00%, much higher than the 3.00% -3.25% predicted a few months ago. (Golden Ten)