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24 Jan 2025

International Economy

The Fed is expected to keep interest rates steady at the FOMC meeting on January 28-29, 2025; KResearch expects the Fed to cut policy interest rates only twice this year, in line with the latest dot plot (Business Brief No.4120)

คะแนนเฉลี่ย
  • At the January 28-29 FOMC meeting, the Fed is expected to maintain interest rates at 4.25-4.50 percent due to rising inflation risks and robust labor market figures. The Fed may wait to see the future inflation and economic trends amid risks from policies under the Trump administration that could increase inflationary pressures.
  • The Fed may maintain interest rates at 4.25-4.50 percent in 1Q25 if economic and inflation momentum are little changed from the present, and if the US increases import tariffs on Mexican, Canadian, and Chinese goods as previously announced.
  • KResearch expects the Fed to cut policy interest rates only twice in 2Q25-4Q25, in line with the latest dot plot released at the December 2024 meeting, as the Fed may keep rates higher if  inflation risks continue to accelerate.

International Economy