A Pause for the US Fed for Interest Rates

By Robert Dietz
NAHB – Eye on Housing
January 29, 2025
Category: Finance & Economics
Region: Canada

The Federal Reserve paused rate cuts, holding the federal funds rate in the 4.25% to 4.5% range. …The Fed noted the economy remains solid… but the central bank appears to be in no hurry to enact additional rate cuts. While the Fed did not cite the election and accompanying policy changes today, the central bank did note that its future assessments of monetary policy “will take into account a wide range of information, including readings on labor market conditions, inflation pressures, and inflation expectations, and financial and international developments.” …Tariffs and a tighter labor market from immigration issues represent upside inflation risks, but equity markets have cheered prospects for an improved regulatory policy environment, productivity gains and economic growth due to the November election. These crosswinds may signal a lengthy pause for monetary policy.

Read More