By Indradip Ghosh BENGALURU, Jan 21 (Reuters) - The U.S. Federal Reserve will hold its key interest rate through this quarter and possibly until Chair Jerome Powell's tenure ends in May, according to a majority of economists polled by Reuters,

Interest rates are likely to edge lower in 2026 as the Fed weighs inflation, jobs and political pressure. See what forecasts suggest for the year ahead.

Food inflation has been relatively moderate though in recent years compared with the steep rise in grocery costs in 2022. The surge in prices at the time was largely the result of a mix of supply and demand pressures, many tied to the pandemic and other global events.

U.S. inflation held at 2.7% in December, with shelter, food, and energy driving monthly gains as Fed weighs rate policy.

After cutting interest rates three times in a row last year, the Federal Reserve indicated last month it probably won’t lower interest rates again for a while. A months-long pause, cemented by key economic data released Friday,

Consumer spending climbed 0.5% in November from the previous month, a solid increase that hits at an economy growing at a healthy pace in the final three months of last year.