Fed expected to pause rate cuts to wait for clarity on tariffs, investors cautious.

From Investing.com: 2025-01-27 06:28:00

Markets are reacting to Trump’s tariff threats on Canada, Mexico, China, and Europe. Investors are cautious ahead of the FOMC meeting due to Trump’s policies and potential impact on the economy. The Fed is expected to pause and wait for clarity on tariffs before making any decisions. The strong US economy and labor market are supporting a hawkish stance despite inflation fears. Powell’s press conference will be closely watched for hints on future rate decisions. The Euro/Dollar broke a key downtrend line, signaling potential further advances towards 1.0630. Thursday’s GDP data and Friday’s PCE index will provide more insight into the US economy.



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