BlockBeats News, on January 9, Bank of America expects that due to concerns over inflation, the Trump administration's aggressive tariffs may force the Federal Reserve into a wait-and-see mode.
The bank's U.S. economist Aditya Bhave stated in a report to clients on Wednesday that "an increasing number of signs suggest that inflation is on the rise," and considering the timing of the government transition, the Federal Reserve may have completed its final rate cut of this cycle.
Bhave stated that inflation is already a concerning issue before considering fiscal easing or tariffs. These policy changes will 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 soon after taking office, the Federal Reserve may not cut rates further. (Jin Shi)