The Federal Reserve is expected to maintain fixed rates even with a high pressure on Trump

Investors do not expect many surprises at the end of the Federal Reserve Politics meeting on Wednesday, where it is widely expected that central bank officials will carry interest rates after three consecutive discounts at the end of 2024.

There is more uncertainty about how Federal Reserve Chairman Jerome Powell used at his afternoon press conference to address The new elephant in the roomDonald Trump’s effect on the future path of monetary policy.

The US President threatens to impose it Definitions on Mexico, Canada and China Early on Saturday, the situation that some economists expect will lead to escalating pressure on inflation at a time when the central bank tries to ensure control of this issue in the end.

What makes things more complicated is that Trump shows that he wants politics to reduce prices. I hinted last week in Next clash With Powell on this topic, saying that he wants the prices to decrease “a lot”, and that he expects to speak directly with the Federal Reserve Chair “in time”.

The chief economist at JPMorgan Michael Feli expects that today Powell will adopt a “duck and coverage” approach at his press conference after the Federal Reserve meeting.

Feroli says that Powell expects that every Federal Reserve member uses his own adaptation assumptions regarding what commercial policies have been adopted in the end, with an explanation that “the only thing that decided at the meeting is the statement of monetary policy” that was issued by “Prices Determination Committee Federalism.

In December, officials changed the language in their policy statement to say that the Federal Reserve will consider the “extent and timing” additional amendments to prices based on data and change expectations-which shows a less commitment model than they were in their campaign for 2024 .

At this December meeting Almost all federal reserve officials agreed This “risks of upward risks to inflation have increased” and this is partly due to the “potential effects” of expected changes in trade and immigration policies, according to minutes of this meeting. Some officials began making these assumptions in their outlook on politics.

In recent weeks, many federal reserve officials Make up They are increasingly anxious about the signs of persistent inflation, noting that as a reason to move cautiously in 2025. In December, they only expected price cuts throughout 2025, with a decrease in prior estimate of four.

The recent reading of inflation for the month of December and was measured by the Consumer Prices Index (CPI) slightly after three months of continuing.

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