The Federal Reserve’s policy committee is in wait-and-see mode. The U.S. economy has entered 2025 with plenty of momentum, a briefly shaky labor market appears to have stabilized, and recent months’ inflation readings have been stubbornly above the Fed’s 2% annual target.

Regarding the current Fed rates, Trump has said that he seeks to lower interest rates by unleashing energy production and would speak to the US Federal Reserve if needed.

At the Federal Reserve’s first meeting in 2025, consumers are going to want what Fed Chair Jerome Powell simply can’t give them: An answer to how much longer interest rates are going to stay high.