Several policymakers have said they expect fewer rate reductions this year following data showing the US economy is on sturdy ground and that inflation has been stickier than anticipated. December data for the Fed’s preferred inflation gauge, the personal consumption expenditures price index, is due Friday.
US Federal Reserve officials are expected to leave interest rates steady this week, giving themselves more time to lower inflation and to assess how President Donald Trump’s policies will affect the economy.
The break in rate cuts would come after three straight reductions since September 2024 that lowered the Fed’s benchmark rate by a full percentage point. Their target range is now 4.25% to 4.5%.
