According to Jinshi Data, Barclays Bank stated that one of the factors keeping U.S. interest rates high is U.S. inflation policy. At the December meeting, some FOMC participants reflected expectations regarding tariffs in their inflation forecasts.
Although Powell did not explicitly answer the Federal Reserve's view on price increases related to tariffs, it is expected that tariffs will exacerbate inflation in the second half of 2025, and the Fed will face challenges in cutting rates.
Barclays Bank expects the Federal Reserve to pause rate cuts after June next year and to resume cuts around mid-2026, with two 25 basis point cuts anticipated in 2026, leading to a terminal rate of 3.25-3.50%.