Fed expected to keep interest rates unchanged, giving time to assess impact of Trump policies

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ODAILY
01-29
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Odaily reports that the Federal Reserve is expected to keep interest rates unchanged this week, giving itself more time to lower inflation and assess the impact of President Trump's policies on the economy. The Federal Reserve has cut interest rates three times in a row since September, with a cumulative reduction of 1 percentage point. Currently, the Federal Reserve's benchmark interest rate range is 4.25% to 4.50%. Several policymakers have indicated that they expect the number of rate cuts this year to decrease, as data shows the US economy is performing well and inflation is more stubborn than expected. The personal consumption expenditure price index, the Federal Reserve's preferred inflation indicator, is scheduled to be released on Friday. EY's chief economist, Gregory Daco, said the Federal Reserve this week "will pause rate cuts, as they want to retain as much optionality as possible to further adjust the federal funds rate later this year."

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