BlockBeats reports that on January 9, Bank of America expects that due to concerns about inflation, the aggressive tariffs of the Trump administration may force the Federal Reserve into a wait-and-see mode.
Aditya Bhave, an economist at the bank, said in a report to clients on Wednesday that 'more and more signs indicate that inflation is on the rise.' Given the timing of the government transition, the Federal Reserve may have completed its last rate cut for this cycle.
Bhave stated that inflation is already a concerning issue before considering fiscal easing or tariffs. These policy changes would pose an upside risk to the Federal Reserve's core PCE forecast (our prediction is 2.8% by the end of 2025). If Trump announces high import tariffs shortly after taking office, the Federal Reserve may not cut rates further. (Golden Ten)