Despite Trump’s request to decrease the Fed rate, Wall Street is increasingly sees the opposite
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President Donald Trump He has already made it clear that he wants federal reserves to immediately reduce the rates, but Wall Street is not seen that this is happening soon. In fact, more analysts warn that increasing the rate is probably.
Just a few days after his inauguration, President Donald Trump started pressing the federal reserves to reduce rates. But Wall Street considers it unlikely, and even an increase in viewing speed is a growing possibility.
On Thursday, Trump told the World Economic Forum in Davos, Switzerland, that he would demand that interest rates immediately fall, and later added that he knew much better than that primarily in charge of making that decision, “alluding to the Fed chairman Jerome Powell.
The Fed meets this next week, with an announcement of a politics that came on Wednesday afternoon. Wall Street expects rates to remain 4.25% -4.5% after 100 base points of decrease last year. And this can be low because it goes because the American economy remains strong while the tariffs are expected, reducing taxes and immigration curbs pushed up to inflation.
“We do not believe that the Fed will reduce rates 2025 – we don’t even believe that the Fed is over,” wrote Thanos Papasavvas, founder and CEO for investing in ABP Invest, UA Financial Times Pro-ed Tuesday. “Instead, we expect that the resistant American economy and Trump policy will push inflation expectations higher and force chairman Jay Powell to increase rates from September onwards.”
He also cited the desire of Fed to maintain his credibility in the fight against inflation after misjudging the earlier birth of the price as a transient.
As a result, the Fed will be “super Orthodox and choose inflation for employment”, if pushed, Papasavvas predicted.
Dan Ivascyn, Chief Director of Investing in Bond Giant Pimco, he said Ft separately On Wednesday, the central bank is ready to hold rates unchanged “in the foreseeable future”, as Wall Street awaits more economic data and clarity on Trump’s policies.
He added that although the rates of rates are not in his basic scenario, they are “surely possible” because recent studies indicate greater expectations of inflation among consumers.
“We are not yet from the forest from the perspective of inflation,” he said Ft.
That comes after Bank of America to earlier this month Fed’s speed cutting cycle is already overAnd that “the conversation should move on to hiking.”
This could be in the game if the fundamental inflation for personal consumption reads inflation exceeds the 3% annual rate, and the long -term expectations of inflation start to move higher, Bofa added.
