Federal Reserve Likely to Hold Interest Rates Steady Amid Economic Growth and Inflation Concerns

The Federal Reserve is anticipated to keep interest rates unchanged until the conclusion of Chair Powell's term in May, as the U.S. economy continues to exhibit robust growth alongside persistent inflation. According to NS3.AI, the economy is supported by last year's rate cuts, increased government spending, and a surge in AI-driven activities. However, there are ongoing concerns regarding labor supply constraints, which could potentially exacerbate inflationary pressures. Additionally, the Supreme Court's recent decision on tariffs is expected to enhance growth prospects by alleviating trade tensions.