Reuters poll: Trump's policies raise inflation concerns, Fed expected to remain on hold in January

Odaily Planet Daily News: The Federal Reserve will keep interest rates unchanged on January 29 and will cut rates again in March, according to a Reuters poll. Policymakers are digesting a series of new economic policies expected to be introduced in Washington. The survey also showed that lingering inflationary pressures may only allow the Fed to cut interest rates once more. Concerns about Trump's promises, from comprehensive tariffs, extended tax cuts to deporting illegal immigrants, have caused U.S. Treasury yields to rise sharply before he took office. The already strong economic outlook and the Fed's future interest rate path will depend on the extent to which the new administration delivers on these promises. All 103 economists surveyed expect the FOMC to keep the key interest rate at 4.25%-4.50% at the meeting on January 28-29, and nearly 60% expect the Fed to cut interest rates in March. 65 of the 102 economists expect two or fewer rate cuts this year. The survey also showed 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. (Jinshi)