the tone of the Federal Reserve became more hawkish last week. It expects inflation rates in 2025 to be higher than previously estimated and reduced the number of expected interest rate cuts next year. Neil Dutta, an analyst at Renaissance Macro, wrote that in an apparently slowing economic environment, the Fed may find itself in a disadvantageous position and may return to a more dovish stance. He doubted that expectations for Trump administration policies - which Powell acknowledged some Fed officials are now considering - will lead to changes in next year's forecasts, and the Fed "seems to be taking preventive measures by slowing down interest rate cuts for potential tariff shocks." Dutta wrote: "Given that the potential momentum of the economy seems to have weakened, this approach is dangerous."