Fed likely to keep rates steady as it awaits more data, clarity on Trump policies

As of January 29, 2025, the Fed aims to hold rates steady amid uncertainty on inflation and Trump’s policies. With rates previously cut significantly in late 2024, the Fed is cautious in its approach, valuing stability over premature cuts.

Analysts suggest skepticism in the market about future inflation and the Fed’s monetary policy. Economists like Steven Blitz believe that while the economy starts 2025 with potential growth, the Fed is likely to proceed with fewer rate cuts, awaiting clearer data.