Trump's policies have led the market to almost halve expectations for a Fed rate cut by the end of 2025

Most economists expect the Federal Reserve to continue cutting interest rates next month, but the rate cut in 2025 will be smaller than they expected a month ago due to President-elect Donald Trump's proposed policies that could lead to higher inflation, according to a new survey by a foreign media outlet, according to reports.

Trump's planned policies, which include higher tariffs and tax cuts, have led the market to almost halve its expectations for the Fed to cut rates by the end of 2025 to about 75 basis points. Market pricing suggests that the likelihood of a rate cut in December is now less than 60%.