FOMC RESULTS ON US FEDS INTEREST RATES DECISION MAKING 2024

The Federal Reserve left rates unchanged in January, but noted that it won’t be appropriate to cut rates until it has gained “greater confidence” that inflation is approaching its 2% goal

The Federal Reserve sent a tepid signal that it is done raising interest rates but made it clear that it is not ready to start cutting.

The Federal Open Market Committee removed language that had indicated a willingness to kenraising interest rates until inflation had been brought under comrol and was on its way toward the Fed’s 2% inflation goal.

However, it also said there are no plans yet to cut rates with inflation still running above the central bank’s target.

During Fed Chair Jerome Powell’s news conference, he said policymakers are waiting to see more data to verify that the trends are continuing.

“We want to see more good data. It’s not that we’re looking for better data, we’re looking for a continuation of the good data we’ve been seeing,” Powell said.

While the committee’s statement did condense the factors that policymakers would consider when assessing policy, it did not explicitly rule out more increases. One notable change was removing as a consideration the lagged effects of monetary policy. Officials largely believe it takes at least 12 to 18 months for adjustments to take effect.

Prepared by: Mr. SAM KIMA, Senior Vice President