Fed Wrap – Fed Shifts to Cutting Bias but Preaches Patience

In this edition, Ryan discusses the outcomes of the January Fed meeting, the key points from the press conference and what to watch ahead of the next meeting.

At the latest meeting, the Fed held rates, maintaining the upper band of their policy rate at 5.5% with no dissenting votes. In their statement, the Fed made many changes, including highlighting that the risks to their goals are moving into better balance. Additionally, they noted that they do not expect it to be appropriate to cut rates until they have gained greater confidence that inflation is moving substantially towards 2 per cent.