US Federal Reserve Chairman Jerome Powell speaks at a press conference after the Monetary Policy Committee meeting in Washington, DC, on December 18, 2024. Andrew Caballero-Reynolds | AFP | Getty ImagesThe Federal Reserve gathers this week for the first time in the second presidential term of Donald Trump, who has already signaled that he wants lower interest rates.If virtually every indication so far is accurate, the new leader of the free world is unlikely to get what he wants, at least not yet, as officials weigh multiple variables that could make policymaking difficult this year and are likely to keep the Fed on hold.”They’re probably going to be taking a back seat,” said U.S. Bank chief economist Beth Ann Bovino. “Nobody knows what to expect from the White House. The policy moves are still very unclear, but we do know that a number of those proposals that have been talked about in the White House are a bit inflationary, and I think that’s going to keep the Fed in check.”Indeed, market pricing is pointing to a near 100% certainty that the rate-setting Federal Open Market Committee will keep the central bank’s policy rate in a target range of 4.25%-4.5%, according to CME Group data.In fact, traders see the Fed on hold until June, a span during which Trump’s plans for tariffs, regulations and immigration are likely to come more clearly into view. Trump said Thursday he will “demand that interest rates drop immediately,” though he does not have authority over the Fed’s decisions.The Fed has cut rates at each of its last three meetings, reducing its short-term borrowing rate by a full percentage point. The rate decision will be released Wednesday at 2 p.m. ET.Despit …
