Key Takeaways It would be a huge surprise to financial markets if the Federal Reserve did anything other than hold its interest rate flat when the Fed's policy committee meets Wednesday.The Fed's battle to subdue inflation is entering a holding pattern.

It is highly unlikely that the Federal Open Market Committee will cut interest rates on January 29. However, a cut in March or May could be possible.

Markets currently expect the Federal Reserve to deliver its next quarter-point interest-rate reduction in June. That’s a bit later than was expected just a few weeks ago. In December, traders expected the cut to come a bit sooner,