CB Views: January 2025 FOMC Recap

Clean up on Fed-Street

A new year, a slimmer statement, and an attempt at staying neutral (for now)

• As expected, the Fed left rates unchanged at a 4.25-4.50% range at its January meeting (which is also the first skip post a series of rate cuts in late 2024). The slimmed down statement came across as slightly hawkish to only be dismissed as a clean-up job given it’s a new year. The comments by chair Powell during the press conference were largely neutral in nature (with Powell trying to avoid being pinned down on policy changes from the new Trump administration). The Fed continues to claim to be data dependent and is still signaling that rate policy remains restrictive and well calibrated. Net, it was largely as expected: a non-event Fed meeting to start 2025.