U.S. economic backdrop factors make it possible for the Fed to keep interest rates unchanged until Powell's term ends

Odaily News: Bill Adams, Chief Economist at Comerica Bank, stated in a report that the view of the Federal Reserve's FOMC committee is that U.S. economic growth momentum appears solid, but inflation remains too high. Against this backdrop, the Fed will keep short-term interest rates unchanged before Powell's term ends in May. In 2026, economic growth will be driven by favorable factors including lower interest rates, increased government spending, the Fed's rate cuts from last year, and improvements in the real estate market. The ongoing AI boom and the refund of retaliatory tariffs repealed by the Supreme Court last week will also provide further support for economic growth. The biggest downside risk to economic growth comes from labor supply bottlenecks, which could trigger a rebound in inflation. (Jin10)