CNBC: Even under the leadership of the new Federal Reserve Chair appointed by Trump, the market still expects only two rate cuts this year.

BlockBeats News, January 27 — According to CNBC, although a new Federal Reserve Chair appointed by Trump is expected within the next few months, respondents in a CNBC survey only anticipate slight changes in the federal funds rate over the next two years.

The survey results are largely consistent with the pricing in the federal funds futures market, indicating that both Wall Street professionals and economic forecasters do not believe the next Fed Chair will significantly cut the overnight rate to the low levels desired by the President. The survey shows that the market’s average expectation is for two 25 basis point rate cuts this year, totaling 50 basis points, with no cuts expected in 2027. The federal funds rate is expected to remain around 3% this year and stay at that level until 2027.

Trump has previously stated that U.S. interest rates should be among the lowest in the world and demanded that the Fed cut rates to 1%. In the context of an inflation rate of about 2%, this demand effectively implies negative real interest rates.