We were supplied today to clarify the first interest rate decision in 2025: Does Donald Trump’s remarks affect the FOMC policy?

The US Federal Reserve will announce the first monetary policy decision of 2025 today on January 29. This is the first US Central Bank of the United States Bank of Central Bank, after Donald Trump was in charge of the 47th US President on January 20. The federal fund interest rate will not change until inflation progresses further toward the 2 % goal.

Regarding the current US Fed Fred interest rates, Trump is calling for lowering them by unleashing energy production, and says that the US Federal Reserve will be needed. “We require an interest rate soon,” he told the World Economic Forum in Davos, Switzerland last week.

Read again: Did we be given to reduce interest rates again? Donald Trump is looking for lower rates by raising energy production. This is what the expert says

How Donald Trump’s remarks are squeezing US FED policies

The US Federal Reserve has a double order to act independently by raising and lowering short -term interest rates, reducing inflation and employment. Experts believe that there was a clear change in the dynamics between the government and the US Federal Government under President Trump.

Experts say that Trump frequently appeals to the United States to reduce interest rates, aiming to improve interest rates, is rare in the degree of political pressure on what is an independent institution. It is said that it is considered. The president does not comment on the interest rate set by the central bank.

Analysts continue to be independent of the United States, but during this period, political rhetoric reflects how sensitive to the market, which provides financial and monetary policy. He pointed out that they could overlap each other.

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“This dynamic has betrayed the subtle balance between short -term political goals and long -term economic stability. For observers, monetary policy is not a vacuum, but external. It reminded that the pressure of the market affects the market expectations and exists in a widespread political and economic context that could affect the priority of policy decisions to some extent. “

At an event in the White House following Davos, Trump said, “I think interest rates are much better than them, and it is much more than those who are mainly in charge of making that decision. I think you know good things.

While talking to a reporter in an oval office, Trump believed that US federal officials would listen to him to determine interest rates. “If I don’t agree, I’ll let it know,” he said. Trump appointed Powell to the US Federal Chair during his first term as the US President in his term of 2016-2020.

The United States supplied the policy results in December

The US Federal Reserve announced the eighth final monetary policy in 2024 last month, reducing benchmark interest rates to 4.25-4.50 % for a quarter point (25 BPS). The Powell -led rate setting panel has launched a policy easing cycle in September for the first time in four years, and has reduced the federal funding rate of the third consecutive conference.

The US Fed now predicts the reduction of two -quarters points by the end of 2025. “When considering the scope and timing of additional adjustments to the target range, the committee will carefully evaluate the receiving data, the evolving prospects, and risk balance,” FOMC stated in a policy statement.

The US inflation has been “greatly relaxed” but the level is “slightly rising” compared to the 2 % of the long -term targets of US federal governments, but the United States is the press conference after the policy. Was gave birth. He added that the Fed was “quite close” until the end of the current easing cycle.

Also read: The US FED FED lowered the benchmark rate to 4.25-4.50 % at the third straight conference and cut twice in 2025. 5 important highlights

“The final interest rate reduction in the US Fed in the United States in 2024 has been covered by the DOT plot update of the December meeting, reducing the expectation of reducing the rate in 2025 from four to two to two.”

“This coordination reflects the cautious attitude of the Fed in light of the last recent resistance and the inflation that shows the geopolitical and economic meaning of Donald Trump’s election victory,” said Dr. Gupta.

Trump’s attitude toward duties increases the possibility of inflation pressure and prompts the Fed to adopt a waiting and viewing approach. Dr. Gupta added that customs duties, which are often used as nuclear options in the trade war, are usually used as negotiations, not practical policies.

“Given these dynamics, the actual tariffs remain minimal, inflation was eased in 2025, and the Fed was re -examined for the rate reduction, achieving more relaxation than the current shown. Investors may be able to focus on long -term tracks, rather than maintaining a balanced perspective and responding to short -term volatility. I added it.

According to Ballinger Group’s FX Market Analyst Kyle Chapman, Powell may say that Trump’s potential policies are not integrated into models. However, it does not implicitly include incorporating fiscal inflation urge and tariffs in their rate prediction. Chapman added that this and the stalls of the progress of the dismissal have led to Hawkish’s expectations.

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