Goldman Sachs and Wells Fargo expect the Federal Reserve to cut interest rates twice this year.

The market generally expects that Trump's tariff policy will drive up inflation and complicate the Federal Reserve's ongoing efforts to control it. Goldman Sachs and Wells Fargo anticipate that the Federal Reserve will cut interest rates twice this year, while Morgan Stanley joined Barclays and Macquarie in predicting that the Fed will only implement a single 25 basis point rate cut this year, citing the uncertainty brought by President Trump's tariff policy. The Federal Reserve also kept its benchmark overnight rate in the range of 4.25%-4.50% during its January policy meeting, with Chairman Powell stating that any further reduction in borrowing costs now depends on whether the Fed can make additional progress in reducing persistently high inflation. (Jin Shi)