Will the Federal Reserve Hold Steady? Investors Watch for Policy Shifts
Will the Federal Reserve Hold Steady? Investors Watch for Policy Shifts The Federal Reserve is expected to keep interest rates unchanged this week, but investors aren’t just focused on whether rates stay put—they’re looking for clues about how President Trump’s policies are shaping the Fed’s economic outlook. The Fed’s latest projections, set to be released Wednesday, will feature the much-anticipated "dot plot" —a quarterly chart that reveals where each Fed official expects interest rates to move. Just a few months ago, in December, the Fed's dot plot signaled two rate cuts in 2024, a shift from the earlier projection of four cuts. At the time, some policymakers were already factoring in the economic impact of Trump’s expected policies. But now, with those policies in motion—including aggressive tariffs —investors want to know: Will the Fed adjust its economic outlook again? How Trump's Policies Could Impact the Fed’s Outlook One of the biggest concerns is...