At Wednesday’s Federal Reserve meeting, officials are anticipated to maintain current interest rates at 4.25%-4.5%, but all eyes are on the quarterly “dot plot” chart that reveals each Fed member’s rate predictions.
The previous dot plot showed consensus for two rate cuts in 2025, and analysts expect this guidance to remain unchanged despite significant pressure from President Trump, who wants a full percentage point reduction.
Fed Chairman Jerome Powell and colleagues are weighing multiple factors including Trump’s tariff policies, trade uncertainties, and recent milder inflation data.
While Trump has publicly called for cuts and hinted at forcing action, Powell appears committed to a patient approach, waiting to see the full impact of economic policies before making moves.