Donald Trump’s return to the White House is overshadowing the Fed’s meeting this week, with policymakers expected to pause changes to interest rates for now.

President Donald Trump fired the inspectors general from more than a dozen federal agencies in a Friday night purge, according to a Trump administration official, paving the way for him to install his own picks for the independent watchdog roles.

Global economic policymakers had been braced for an economic firestorm from the new U.S. administration but instead got a surprisingly restrained start from Donald Trump, who remains big on rhetoric but more cautious on action - for now.

According to the CME FedWatch tool, the Fed is certain to keep interest rates unchanged in the range of 4.25%-4.50%. Investors will pay close attention to Fed Chair Jerome Powell’s press conference to determine whether policymakers are comfortable with Trump’s call for immediate rate cuts.

The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, falls back to near 107.50 from an intraday high of 107.80. The Greenback lost its risk premium as market participants expected President Trump would use tariffs only to negotiate deals.

Investors have anxiously awaited Trump's start to see which policies he prioritizes and which promises he makes good on. Few issues are being watched closer than tariffs, which Trump campaigned on. Trump said his administration plans to launch 25% tariffs on Mexico and Canada on Feb.

Progress reducing the rise in consumer prices has stalled, with recent data coming in hotter than expected. By pressuring the Federal Reserve, Trump could reignite inflation.

U.S. President Donald Trump delivered remarks Thursday in a video appearance at the World Economic Forum’s annual gathering in Davos, Switzerland.

The Federal Reserve’s first meeting of 2025 this week may throw a wrench into the stock-market rally just as investors worry President Donald Trump’s potentially inflationary policies could complicate

THE US Federal Reserve is expected to announce a pause in rate cuts on Wednesday (Jan 22), as policymakers look to continue tackling inflation under close and vocal scrutiny from President Donald Trump.

Trump's remarks come five days before the Fed's first policy meeting to be held during his administration - on Jan. 28 and 29 - with very broad expectations officials will leave rates unchanged.