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Today's Market

Michael P. Reinking, CFA
Sr. Market Strategist

January 29, 2025 at 4:00 p.m. EST

After cutting rates for three consecutive meetings by a total of 100bps the FOMC left the Fed Funds target rate unchanged at 4.25% - 4.5%, as widely expected. There were only minor changes to the statement with the language describing labor market conditions upgraded slightly, while saying inflation remains somewhat elevated removing the phrase “has made progress toward the Committee’s 2 percent objective”. There were no other changes to the statement and the vote was unanimous. There was nothing surprising in the statement but on the margin, you could argue that the description of the economic backdrop was slightly hawkish. Treasury yields had been moving higher throughout the morning and ticked up an additional 3bps after the statement. Equity markets also pulled back modestly retesting the session lows ahead of the press conference.

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