The Fed Pushes Pause

2025-01-30 07:25:00 ET

Summary

• The FOMC announced on Wednesday it would hold its federal funds rate target at 4.25-4.5 percent. This ended the three-meeting rate cut streak that began in September 2024.
• Fed officials began signaling the pause ahead of the December 2024 meeting, following less-than-stellar inflation readings for September and October.
• If FOMC members revised the projected path of the federal funds rate out of concern following the September and October inflation readings, what will they do now that those readings appear to be a blip?

By William J. Luther

The Federal Open Market Committee announced on Wednesday it would hold its federal funds rate target at 4.25-4.5 percent, ending the three-meeting rate cut streak that began in September 2024. The decision was widely expected. Prior to the meeting, the CME Group put the odds of a rate cut at just 0.5 percent....

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