Trump's policies may limit the Federal Reserve's capacity to lower interest rates in 2025.

After the Federal Reserve cut interest rates by 100 basis points, the market generally believes that future policy easing will depend on further evidence of economic weakness in the USA and a reduction in inflationary pressures. Trump's low tax and loose regulatory policies are expected to promote economic growth, while immigration controls and trade tariffs may pose a risk of price increases, meaning the market may have to wait some time to see the next rate cut from the Federal Reserve. Trump's policies will keep the Federal Reserve in a mildly hawkish stance. At the December FOMC meeting, the Federal Reserve cut rates by 25 basis points as expected. However, at the subsequent press conference, the Federal Reserve stated.

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