The Federal Reserve is expected to leave interest rates on hold this week, giving itself more time to reduce inflation and assess the impact of President Trump's policies on the economy. The Fed has cut interest rates three times in a row since September, with a cumulative 1 percentage point cut. The Fed currently has a base rate range of 4.25% to 4.5%. Several policymakers have said they expect fewer rate cuts this year as data show the economy is performing solidly and inflation is more stubborn than expected. December data from the Fed's preferred inflation measure, the personal consumption expenditures price index, are scheduled to be released on Friday. Gregory Daco, chief economist at Ernest & Young, said the Fed "will pause rate cuts this week, and they want to keep as many options as possible for further adjustments to the federal funds rate this year."