Analyst: The Federal Reserve may hit the pause button on interest rate cuts within the year, and does not rule out the possibility of resuming rate hikes

Skyler Weinand, an analyst at Regan Capital, said that the stronger-than-expected CPI report in January could prompt the Federal Reserve to hit the pause button on interest rate cuts for the rest of this year. He stated, "The Fed can only wait and see now, hoping for changes in economic indicators that show more progress has been made on inflation." "If consumer prices or inflation expectations rise further, the Fed's next move is likely to be raising short-term interest rates." Weinand also noted that extreme uncertainty surrounding President Trump's fiscal policy and how it will affect consumer prices is causing extreme anxiety for the Federal Reserve and making it harder for policymakers to cut interest rates in the short term.