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The FedWatch tool shows that the likelihood of further interest rate cuts during this week’s FOMC meeting was almost zero per cent. President Trump demanded rate cuts and lower oil prices early this week, which could also affect inflation. The Financial Times reported that Trump’s demand for rate cuts was likely to be overlooked during this week’s FOMC meeting since slowing inflation and steady job growth sparked debate over the need for further rate cuts. HSBC U.S. economist Ryan Wang said the Fed was expected to refrain from sending signals for a rate cut, adding that it was a hawkish risk. According to FT, investors expected the Fed to hold rates at their current level of 4.25%-4.50% after three consecutive cuts since September last year. Investors’ attention will subsequently focus on any shift in outlook as per the remarks and accompanying statement made by Fed Chair Jay Powell in the press conference after the FOMC meeting. However, the Fed chair is likely to face questions about his early actions and comments from Trump, who this week said he would demand interest rates cut and drop in oil prices. Since November’s election, Trump and Powell have downplayed any friction including the president’s previous calls for the Chair’s exit. Powell also made it clear in November that he planned to serve out his term and maintained that Trump could not remove him. ECB signals more aggressive interest rate cut policy 🚨The next week is MASSIVE: The Federal Reserve and the Bank of Canada are scheduled to announce their interest rate decision on Wednesday. On Thursday, the European Central Bank is due. The BoC and the ECB are expected to cut by 0.25% and the Fed to leave rates unchanged. pic.twitter.com/27kKD1u1mz — Global Markets Investor (@GlobalMktObserv) January 26, 2025 Investors expect another interest…