Bloomberg: markets focus on Powell’s remarks and Fed’s decision to hold rates steady

Bloomberg analysts anticipate that the US Federal Reserve (Fed) will maintain its benchmark interest rate at 4.25–4.50% during its meeting on Wednesday. Policymakers are expected to proceed cautiously amid ongoing uncertainty surrounding President Trump’s trade policies and their potential economic repercussions.

The imposition of tariffs and retaliatory measures has weakened consumer confidence while fueling inflation expectations. According to Bloomberg, Fed Chair Jerome Powell’s post-decision press conference could signal concerns about a slowdown in US GDP growth. Analysts suggest that the Fed may revise its economic growth projections, reflecting shifting assessments of the nation’s economic trajectory.

Investors will closely scrutinize Powell’s remarks for indications that the Fed stands ready to support the economy if needed. Bloomberg notes that in December, Fed officials forecast two rate cuts for 2025 based on median estimates. Economists expect this forecast will remain unchanged for the current year.