The Federal Reserve is widely expected to hold rates steady at 4.25%-4.50% on Wednesday as President Donald Trump‘s volatile tariff policy clouds the economic outlook.
The decision will mark the fourth straight pause in the rate-cutting cycle that began in September. Yet, rather than the rate decision itself, the key data to watch for markets will be release of new economic projections.
Wait-And-See Remains The Fed’s Mantra
Chair Jerome Powell and his colleagues have consistently repeated since May that monetary policy is “in a good place.” Despite persistent calls from Trump to cut rates more aggressively, Powell is likely to maintain a data-driven approach and to push back pressures to cut prematurely.
David Mericle, economist at Goldman Sachs, said in a note last week the Fed is unlikely to make big moves until it gets more clarity, and that recent inflation data and easing trade tensions support staying on hold.
“The …