The Federal Reserve's future moves on interest rates in 2025 will be in a narrow range unless the trajectory of inflation changes, Goldman Sachs CEO David Solomon said in comments posted on the firm's website on Wednesday.

Treasury yield is hovering just above a six-week low around 4.50% as investors continue to digest Wednesday’s monetary policy update from the Federal Reserve. The U.S. central bank left interest rates unchanged at a range of 4.

Central bank policymakers are widely expected to stand pat on interest rates. Investors await further details from Fed Chair Jerome Powell’s press conference.

The U.S. economy grew 2.3% in the fourth quarter as consumers again powered gains. Here's what the showing could mean for Fed plans for more rate cuts

Outside of a U.S. President bending norms, the Fed also faces challenges in achieving its economic objectives. Inflation remains above its 2% target: Its preferred measure is at 2.4%, though core prices — considered a better gauge of where inflation is headed — rose 2.8% in November from a year ago.

The Fed will likely pause its rate cuts this week. After that, uncertainty over Trump's tariff, immigration plans make forecasting rates a dice roll.

The Fed reduced its rate last year to 4.3% from 5.3%, in part out of concern that the job market was weakening. Hiring had slowed in the summer and the unemployment rate ticked up, leading Fed officials to approve an outsized half-point cut in September. Yet hiring rebounded last month and the unemployment rate declined slightly, to a low 4.1%.

The Fed signaled as much at its last meeting in December, when the central bank delivered an interest cut, but hinted that it would take its foot off the gas. Stocks tumbled on the news, and it was one of the worst days of the year for the market.

Global markets are concentrated in three major ways: U.S. stocks have come to dominate global equity indices, technology as a sector is dominating benchmarks, and there is also a portfolio trend towards large positions in a few single stocks. All this makes the rally more fragile.

The U.S. economy is in a “sweet spot” and the market is possibly too pessimistic on the pace of Federal Reserve interest rate cuts.

US stock futures gained after strong earnings from Apple Inc. and Intel Corp. buoyed sentiment at the end of a volatile week for tech stocks, while traders braced for President Donald Trump’s announcement on tariffs at the weekend.