Politics and Policy Clouds Path Ahead for Fed

From Investing.com: 2025-02-25 08:26:00

The central bank faces challenges with real-time monetary policy decisions amid White House edicts. Economists express concern over potential downside risks to the economy from layoffs and policy uncertainty. President Trump reaffirms plan for tariffs on Canada and Mexico next week, potentially impacting markets. Fed expected to leave target rate unchanged at next meeting. Recent decline in key rate implies market pricing in dovish outlook for Fed policy. Model suggests modestly tight Fed policy currently. Reality check due on Friday with PCE inflation data release for January. Fed faces challenge of emerging impacts of tariffs and policy decisions.



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