Analyst: The Federal Reserve may pause interest rate cuts in January

ChainCatcher news, Abrdn analyst Dongyue Zhang stated in a research report that the Federal Reserve may pause interest rate cuts in January as it shifts to a slower pace of easing. If inflation continues to cool, a rate cut is expected in March.

After the anticipated policy changes in 2025, the incoming Trump administration may bring greater volatility. Despite the Federal Reserve's hawkish stance, the opportunities outweigh the risks. The benefits of deregulation and a more favorable business environment will promote productivity improvements and capital allocation. The U.S. economy is expected to remain resilient, the labor market healthy, AI-related capital expenditures to expand, and capital markets to be stronger. (Jin Shi)