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Federal Reserve Faces Policy Challenges Amid Fiscal Uncertainty

by Sonia Park
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Federal Reserve Faces Policy Challenges Amid Fiscal Uncertainty

As the Federal Open Market Committee (FOMC) convenes its first meeting of 2025, Federal Reserve officials are grappling with significant fiscal policy uncertainties stemming from the Trump administration's proposed economic measures. These uncertainties are influencing the Fed's deliberations on monetary policy, particularly regarding interest rate adjustments.

President Donald Trump has been vocal in advocating for substantial interest rate cuts, asserting that such reductions are essential to bolster economic growth. He has emphasized his understanding of interest rates and has expressed a desire for significant cuts. However, the Fed, under the leadership of Chair Jerome Powell, is expected to. . .

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