Fed expected to hold rates steady at FOMC meeting even as Trump dials up pressure

Investors aren’t expecting many surprises at the end of the Federal Reserve’s Wednesday FOMC policy meeting, where central bank officials are widely expected to hold interest rates steady following three consecutive cuts at the end of 2024.

There is considerably more uncertainty surrounding how Fed Chair Jerome Powell will use his afternoon press conference to address the new elephant in the room: the effect that Donald Trump could have on the future path of monetary policy.

The US president is threatening to impose tariffs on Mexico, Canada, and China as early as this Saturday, a stance that some economists predict will put upward pressure on inflation at a time when the central bank is trying to ensure that issue is finally under control.

Jennifer Schonberger | Yahoo Finance

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