Economic Uncertainty Looms as Inflation and Trump Policies Challenge Fed

Recent inflation data and President-elect Trump's fiscal plans complicate the Federal Reserve's interest rate strategy.

The U.S. Consumer Price Index showed a 2.6% year-over-year increase, with core inflation at 3%, complicating the Federal Reserve's rate cut plans.
President-elect Donald Trump's proposed tax cuts and tariffs are expected to increase inflation, challenging the Fed's ability to lower interest rates.
The U.S. dollar has surged post-election, impacting global markets and raising concerns about potential trade wars and inflationary pressures.
Longer-term U.S. Treasury yields have risen, reflecting investor uncertainty over future monetary policy and economic growth under Trump's administration.
The Federal Reserve faces a delicate balance in managing inflation expectations and economic growth as it navigates potential policy shifts in 2025.