Inflation is proving stickier than expected, which could cause Fed to hit pause button on more interest rate cuts.

There’s uncertainty about expected policy changes favored by the Trump administration - which may be inflationary to a degree. We anticipate that Fed will leave rates unchanged on Jan 29.

The Fed is likely done cutting rates amid robust economic activity and can now eye a hike if core PCE or long-term inflation expectations rise, BofA says.