Fed Rate Decision Looms Amidst Trump's Tariff Threats and Inflation Concerns

Key Points:

* The Federal Reserve's FOMC meeting concludes on Wednesday, with expectations of steady interest rates.
* Market uncertainty surrounds Fed Chair Jerome Powell's address regarding the potential impact of President Trump's trade policies on monetary policy.
* Trump's tariff threats on Mexico, Canada, and China could elevate inflation, complicating the Fed's efforts to curb it.
* Experts predict Powell will adopt a cautious approach in his press conference.
* The Fed's December policy statement hinted at a less aggressive stance on rate cuts in 2025.
* Federal Reserve officials have expressed growing concerns about inflation, leading to a downward revision in rate cut forecasts for 2025.
* The latest CPI data indicates modest progress in inflation control.
* Economists project a rise in "core" PCE inflation for December.
* Concerns emerge regarding the possibility of the Fed raising rates this year, potentially drawing Trump's ire.

The market awaits the Federal Reserve's policy decision at 2 p.m. ET, followed by Powell's press conference at 2:30 p.m. ET. Financial experts provide in-depth analysis of the latest market developments and events affecting stock prices.