Federal Reserve officials at their meeting Dec. 17-18 expected to dial back the pace of interest rate cuts this year in the face of persistently elevated inflation and the threat of widespread tariffs and other potential policy changes.

The Federal Open Market Committee is highly likely to hold interest rates at their current level at their next meeting, but cuts later in 2025 remain on the table.

There’s uncertainty about expected policy changes favored by the Trump administration - which may be inflationary to a degree. We anticipate that Fed will leave rates unchanged on Jan 29.