Gold 
“Despite a partial rebound the past two trading days, the U.S. stock market is down sharply from its record high in mid-February and could use a shot in the arm.
Don’t expect the Federal Reserve to provide it.
With the Fed expected to hold its key interest rate steady at the end of a two-day meeting Wednesday, the drama will center on the number of rate cuts Fed officials forecast for 2025.
And since President Donald Trump’s aggressive tariffs on various imports are projected to both push up inflation and dampen economic growth, the central bank is caught uncomfortably between its two mandates.
The Fed raises rates, or keeps them higher for longer, to tame inflation. It cuts rates to bolster a weak economy and job market.
So which of those missions do policymakers serve this week? Should inflation concerns prompt them to scale back their rate cut forecast? Or should signs of a wobbly economy prod them to predict more rate decreases, boosting the stock market and, indirectly, growth prospects?
What is the Fed rate prediction?
With forces pulling in both directions, several top forecasters expect Fed officials to play it down the middle and maintain their December forecast of two quarter-point rate decreases in 2025. But with inflation still elevated and consumers’ inflation expectations rising, some say the central bank could err on the side of caution and reduce its forecast to just one rate reduction, potentially generating further market turmoil.
“The (Fed) will face a difficult trade-off between addressing rising inflation and a weakening labor market,” Barclays wrote in a note to clients. “We think the elevated inflation and the surge in… longer-run inflation expectations will prevent the (Fed) from responding aggressively to the softening in economic and labor conditions.”
Barclays figures the Fed will reduce its forecast to just one rate cut. Deutsche Bank, like Goldman Sachs and JPMorgan Chase, is still looking for an estimate of two cuts but sees a risk of just one.”
*This information is solely an excerpt of a third-party publication and is incomplete. Please subscribe to the referenced publication for the full article. This is not an offer to buy or sell precious metals. Investors should obtain advice based on their own individual circumstances and understand the risk before making any investment decision.
