The Fed meets for the first time since Trump's term started. Here's what to expect
Published On Jan 28, 2025, 4:39 PM
The Federal Reserve is set to meet for the first time during Donald Trump's second presidential term, amidst expectations that they will maintain the current interest rate range of 4.25%-4.5%. Trump has indicated a desire for lower interest rates, but market analysts predict the Fed will hold steady due to concerns over inflation and uncertainty around new policies from the administration. Former Fed officials and economists suggest that the Fed should prioritize stability over responding to political pressure, with many predicting no immediate rate cuts are likely until summer.
Stock Forecasts
XLF
Positive
The market appears to be stabilizing as investors align their expectations with a cautious Federal Reserve stance despite calls for lower rates. If the Fed maintains its current policy, it may support steady growth in financial markets, especially for financial and economic ETFs that perform well in stable interest rate environments.
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