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Fed Pauses, Powell Sidesteps Political Questions

01/29/2025

As expected, Fed officials voted unanimously to hold the overnight rate target steady after easing at each of the previous three FOMC meetings. The Official Statement released at the conclusion of the meeting showed little change from December, but the few edits made were considered significant. In particular, Fed officials removed mention of inflation having “made progress toward the committee’s 2% objective,” and recharacterized the labor market as “solid.”

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