U.S. Federal Reserve policymakers meeting next week are expected to keep interest rates on hold but the larger story unfolding will be how the central bank confronts early moves by President Donald Trump that are likely to shape the economy this year,

It is highly unlikely that the Federal Open Market Committee will cut interest rates on January 29. However, a cut in March or May could be possible.

Markets currently expect the Federal Reserve to deliver its next quarter-point interest-rate reduction in June. That’s a bit later than was expected just a few weeks ago. In December, traders expected the cut to come a bit sooner,

Key Takeaways It would be a huge surprise to financial markets if the Federal Reserve did anything other than hold its interest rate flat when the Fed's policy committee meets Wednesday.The Fed's battle to subdue inflation is entering a holding pattern.

The Federal Reserve will hold its first policy meeting of the year on Jan. 28 and 29, where it is widely expected to keep interest rates right where they are after cutting three times since September.

Markets continue to expect the Federal Reserve to deliver just one more quarter-point interest-rate cut this year, but there’s a little less certainty than before. There is a 34% chance that the Fed’s key rate finished the year at 4%-4.