According to Odaily, economists Samuel Tombs and Oliver Allen from Pantheon Macroeconomics have indicated that Federal Reserve officials are currently in a communication blackout ahead of this week's policy decision. However, it is anticipated that they will unanimously decide to cut interest rates by 25 basis points. Federal Reserve Governor Christopher Waller has expressed a preference for a 25 basis point rate cut, marking the clearest policy stance among committee members before the meeting.
Economists expect that, given the persistent inflation rates remaining above target, the Federal Reserve's default option at the January meeting will be to pause further rate cuts. This expectation comes as the central bank continues to navigate the challenges of maintaining economic stability while addressing inflationary pressures. The decision to potentially lower rates reflects ongoing efforts to stimulate economic growth amid these inflation concerns.