BUZZ-COMMENT: Will Fed cut in March? Dollar, Trump want to know

Jan 20 (Reuters) - While the Federal Reserve is expected to keep interest rates unchanged next week, there is uncertainty about what it will do eight-and-a-half weeks into Donald Trump's second term as U.S. president.

Sixty-one out of 103 economists think the Fed will reduce rates on March 19, according to a Reuters survey published on Friday.

The dollar might cede some of its gains since Trump's November presidential election victory if the 61 are right.

A Fed rate cut in March would almost certainly be welcomed by Trump, although markets currently see a 69% chance of a hold. 0#USDIRPR

The USD index scaled a 26-month peak of 110.17 at the start of last week after strong U.S. jobs data prompted J.P. Morgan and Goldman Sachs to push out their next Fed rate cut forecasts from March, while Bank of America said "the risks for the next move are skewed towards a hike".

The Reuters poll published on Friday showed 43 of 49 economists think a Fed rate hike is unlikely this year.

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(Robert Howard is a Reuters market analyst. The views expressed are his own)

((robert.howard@thomsonreuters.com))