In a key decision marking President Donald Trump's second term, the Federal Reserve is anticipated to halt rate cuts on Wednesday. Despite Trump's desire for influence over Fed decisions, Chair Jerome Powell is set to explain the rationale behind the central bank's impending decision during a post-meeting news conference.
Following three consecutive rate cuts late last year, the Fed is poised to enter a holding pattern due to limited progress in inflation and the robust US economy characterized by low unemployment and healthy growth. While Fed officials hint at potential future rate cuts, traders are skeptical about a cut at the upcoming March meeting.
