1348 GMT - The U.S. Federal Reserve is widely expected to keep interest rates on hold at the 4.25% to 4.50% range at Wednesday's rate announcement, Berenberg's Atakan Bakiskan says in a note. The Fed could, nonetheless, alter its approach to U.S. inflation by introducing the "flexible average inflation targeting" approach, Bakiskan says. This allows for inflation to remain above 2% for a while to compensate for periods of below-target inflation, he says. The Fed is, nonetheless, expected to maintain the U.S. inflation target at 2%, Bakiskan says. The latest U.S. inflation data shows annual inflation was 2.9% in December. (miriam.mukuru@wsj.com)
(END) Dow Jones Newswires
January 27, 2025 08:48 ET (13:48 GMT)
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