Internet reports that last week, the Fed's tone became more hawkish. It expects inflation in 2025 to be higher than previously forecast and has reduced the number of interest rate cuts expected next year. In an economic environment that appears to be slowing, the Fed could be on a bad side and then return to a more dovish stance, writes Neil Datta, an analyst at Renaissance Macroeconomics. He suspects that expectations of Trump administration policies-which Powell acknowledges are now taking into account by some Fed officials-will lead to changes in forecasts next year, and the Fed "appears to be taking precautions against potential tariff shocks by slowing the pace of interest rate cuts." "This is dangerous given that the underlying momentum of the economy seems to have waned," Datta wrote.