Fed Wrap – Extended Hold in the Face of Uncertainty

Ryan Weldon, from IFM’s Debt Investments team in New York, features in our Fed Wrap market update videos discussing central bank themes in debt markets, with a particular focus on the US Federal Reserve (Fed).
In this edition, Ryan discusses the outcomes of the January Fed meeting, the current focus of the Fed as they remain on hold, and how the Fed plan balance their policy stance with the new administration.
At the January meeting, the Federal Reserve held rates, maintaining the upper band of their policy rate at 4.5%. In the statement, the Fed adjusted its language to acknowledge the strength of the jobs market and the recent stabilization of the unemployment rate at lower levels.
Additionally, the statement removed language on inflation progress and highlighted that inflation remains somewhat elevate. The Fed’s decision to hold was widely expected following the hawkish shift at the December 2024 meeting where they underscored uncertainty as a main reason for their wider range of expectations through 2025.
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