The economic background factors in the United States make it possible for the Federal Reserve to keep interest rates unchanged until the end of Powell's term.

Odaily Planet Daily reports that Comerica Bank Chief Economist Bill Adams stated in a report that the Federal Reserve FOMC members believe the U.S. economy is showing good growth momentum, but inflation remains too high. Against this backdrop, the Fed is expected to keep short-term interest rates unchanged before Powell’s term ends in May. In 2026, economic growth will be driven 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 AI boom and the tax refunds from the repeal of reciprocal tariffs by the Supreme Court last week will also further support economic growth. The biggest downside risk to economic growth comes from labor supply bottlenecks, which could trigger a rebound in inflation. (Jin10)