US FOMC Statement

The Fed stayed put and signaled no rush in reducing rates, while the ECB cut rates and said more cuts are coming. Both as expected. The central bank meetings at the major central banks did not surprise this week. The Fed stayed put while the ECB cut rates by 25bps. In terms of forward guidance, the Fed saw no rush in moving rates at their next meetings. The ECB, on other hand signalled more cuts are coming, most likely another 25bps at the next two meetings. The difference in central bank actions and outlook is easily explainable by ...

The Federal Reserve reiterated its focus on a patient, data-driven path at its January meeting when it held its policy rate steady at 4.25%–4.5%. This decision followed three straight meetings at which the Fed cut its rate. Elevated uncertainty about the outlook for U.S. fiscal and trade policy, alongside recent data showing solid growth and labor market stability, made it easy for the Fed to leave rates unchanged and signal that there is no hurry to adjust rates again. In the press conference, Fed Chair Jerome Powell essentially set ...

The policy rate was left unchanged at 4.5% and there was no change in balance sheet policy guidance, both as universally expected. A combination of minor statement tweaks and a strong indication in the press conference that the FOMC will be patient made it clear that the March meeting is unlikely to introduce further easing. Markets are roughly pricing our two 2025 cuts. While there was some market volatility through the communications, for the most part key measures ended up very little changed. Please see the accompanying statement ...

The Federal Reserve System is the central bank of the United States. It performs five general functions to promote the effective operation of the U.S. economy and, more generally, the public interest. The Federal Reserve conducts the nation’s monetary policy to promote maximum employment, stable prices, and moderate long-term interest rates in the U.S. economy; promotes the stability of the financial system and seeks to minimize and contain systemic risks through active monitoring and engagement in the U.S. and abroad; promotes the ...

The Federal Reserve held interest rates steady on Wednesday after price increases ticked up over the last three months, suggesting inflation may still have some life in it. Central bankers held rates at a range of 4.25 to 4.5 percent, in line with market expectations. The decision was unanimous among the voting members of the Federal Open Market Committee (FOMC), the panel of Fed officials responsible for setting interest rates. The CME Fed Watch prediction algorithm based on futures contract prices had the probability of a hold in ...

The Federal Reserve gathers this week for the first time in the second presidential term of Donald Trump, who has already signaled that he wants lower interest rates. If virtually every indication so far is accurate, the new leader of the free world is unlikely to get what he wants, at least not yet, as officials weigh multiple variables that could make policymaking difficult this year and are likely to keep the Fed on hold. “They’re probably going to be taking a back seat,” said U.S. Bank chief economist Beth Ann Bovino. “Nobody ...

Most analysts expect no change to FOMC policy at the meeting this week, keeping the target range at 4 1/4 to 4 1/2 percent. Market participants currently expect the FOMC to be on hold at the January, March and May meetings, with the next rate cut in May. From BofA: We expect the Fed to stay on hold at its January meeting. The focus will be on the March decision and the Trump agenda. Powell is likely to retain maximal optionality by continuing to stress data dependence and insist that the Fed will not pre-judge or preempt policy. ...