U.S. economic background factors make it possible for the Federal Reserve to keep interest rates unchanged until the end of Powell's term.

According to Odaily, ComericaBank Chief Economist Bill Adams stated in a report that the view of the Federal Reserve FOMC committee is that the momentum of U.S. economic growth appears solid, but the inflation rate remains too high. Against this backdrop, the Federal Reserve will keep short-term interest rates unchanged before Powell's term ends in May. In 2026, economic growth will be supported by favorable factors such as lower interest rates, increased government spending, last year's rate cuts by the Federal Reserve, and improvements in the real estate market. The ongoing artificial intelligence boom and the refund of reciprocal tariffs abolished 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. (Golden Ten Data)