RBC looks ahead to the Fed's Intrerest rate decision: Pay attention to the hint of interest rate cuts, expect to cut rates by the middle of the year

Royal Bank of Canada: The market widely expects the Fed to keep the target range of the federal funds Intrerest Rate unchanged for the fourth time in a row. Attention will be focused on any hints about the potential timing of a shift to rate cuts. Another round of strong GDP data in the fourth quarter suggests that the economy is still more resilient than expected to raise interest rates. However, the slowdown in price growth gives the Fed the flexibility to keep Intrerest Rate unchanged for the time being, and to respond with rate cuts later this year (which we expect before the middle of the year) once the economy begins to weaken more significantly.