How Fed’s First Decision Could Look Like After Trump’s Inauguration

The US Federal Reserve is expected to hold interest rates steady on January 29 and resume cutting in March, according to a slim majority of economists polled by Reuters. The survey, taken before President-elect Donald Trump’s inauguration, suggests lingering inflation pressures may allow the Fed to cut rates once more.

Concerns around Trump’s pledges, including across-the-board tariffs, extending tax cuts, and deportations of illegal immigrants, have already contributed to a dramatic rise in U.S. Treasury yields before he takes office.

The outlook for an already-strong economy and the Fed’s future rate path will depend on how aggressively the incoming administration follows through on those pledges. Since the last cut in December, inflation has fallen and the job market had a blowout month in December, suggesting further economic stimulus may not be required for an already firing economy.