The Federal Reserve makes its first interest rate decision of the year next Wednesday. Hopes for a further cut to the federal funds rate have long since faded away: market pricing is now for just one cut in the whole of 2025, currently predicted to arrive in either May or June. A lot could happen between now and then, and from investors’ point of view the chief unknown is the size and scope of Donald Trump’s tariff policies. That uncertainty, combined with the continued good health of the US economy, is why the Fed is expected to sit on its hands for now.But the Fed’s statement will provide the latest insight into its thinking, after its December projections surprised markets by indicating fewer 2025 cuts than expected.
Monday 27 January
China: Manufacturing PMI, non-manufacturing PMI