Fed expected to keep interest rates unchanged, giving time to assess impact of Trump policies

Golden Finance reported that the Federal Reserve is expected to keep interest rates unchanged this week, giving itself more time to reduce inflation and assess the impact of President Trump's policies on the economy. The Fed has cut interest rates three times since September, with a cumulative reduction of 1 percentage point. Currently, the Fed's benchmark interest rate range is 4.25% to 4.5%. Several policymakers have said they expect fewer rate cuts this year as data shows that the US economy is performing well and inflation is more stubborn than expected. December data for the personal consumption expenditures price index, the inflation indicator favored by the Federal Reserve, is scheduled to be released on Friday. Gregory Daco, chief economist of Ernst & Young, said that the Federal Reserve "will pause rate cuts this week, and they want to keep as many options as possible to further adjust the federal funds rate this year." (Jin10)