by winston » Thu Feb 01, 2024 4:18 pm
Key Points for January FOMC Meeting
Analyst: Shawn Sng
Holding rates steady, awaiting greater confidence – In this FOMC meeting, the U.S. Federal Reserve (Fed) has decided to maintain its rates at a 22-year-high of 5.25-5.50%. This marks the fourth consecutive meeting where the rate has been held steady and this decision was in line with market expectations.
Progression toward lower inflationary data - In the latest data releases, including indicators such as the Consumer Price Index (CPI) and Personal Consumption Expenditure (PCE), there are consistent indications of progress toward the 2% range.
Federal Reserve Projection/Guidance – In December’s meeting, the market was pricing for rates to fall by approx. 150bps for this year with rate cuts coming as early as March.
However, this optimism was dampened with Chairman Powell saying that he did not expect that it would be appropriate to reduce the target range until more certainty surfaced providing the Fed with the confidence required.
Source: Phillips
It's all about "how much you made when you were right" & "how little you lost when you were wrong"