The recent assessments by the Federal Reserve regarding rising inflation expectations for 2025 have disrupted markets, challenging earlier optimism that monetary policy tightening could control inflation without hindering economic growth. Despite significant interest rate hikes since 2022, the US GDP maintained a growth trend, leading to revised inflation forecasts. The incoming administration of President Donald Trump is also expected to influence these dynamics, particularly through proposed tariff increases. Market reactions have been notable, demonstrating the interconnectedness of monetary policy and economic expectations.