The first Federal Reserve decision of this year is coming! A "pause in interest rate cuts" seems almost certain, what other highlights are there?
The market expects a 97% probability that the Federal Reserve will hold steady this week, paying attention to the qualitative statements on tariff impacts in January's FOMC. Goldman Sachs anticipates that tariffs may raise inflation by 0.3 percentage points in one go, but this won't change the overall downward trend, and the interest rate cut window will still open.
Express News | Traders have raised their bets on a Federal Reserve interest rate cut, fully digesting a 50 basis point cut within the year.
Trump vs. Powell, who will dominate the global market this week?
Analysis suggests that if the Federal Reserve chooses to delay interest rate cuts this week, it may become a hindrance to the rebound of U.S. stocks and provide a temporary respite for the bond market. However, Trump can influence the Federal Reserve's decisions through fiscal policy. The market is now closely watching Trump's every speech, as "this marathon-like game has just begun."
Trump keeps calling for the Federal Reserve to cut interest rates, but Wall Street does not agree with his view.
① Trump hopes that the Federal Reserve will lower interest rates immediately, but Wall Street expects the rates to remain at 4.25%-4.5%, due to the strong USA economy, tariffs, tax cuts, and immigration restrictions pushing inflation higher. ② The Chief Investment Officer of ABP Invest predicts that the resilient USA economy and Trump's policies will increase inflation expectations, forcing the Federal Reserve to raise interest rates starting in September.
Trump fired the "first shot" in the tariff war, and Colombia made comprehensive concessions!
The White House announced that the Colombian government will accept unlimited repatriation flights, and tariffs and sanctions on the country will be postponed.
U.S. Vice President Kamala Harris commented on inflation: RBOB Gasoline and grocery prices will decrease, but it will take some time!
① The Vice President of the USA, Vance, stated that prices in the USA will begin to decline, but it will take time. He praised the work efficiency of President Trump within five days of taking office and mentioned that he will work with Congress to create jobs and reduce prices through executive orders. ② Vance believes that addressing the Energy price issue will help lower everyday costs, and Trump has taken measures to reduce Energy prices.