🔥 Fed Preview: Rates Expected to Hold Steady in January
The consensus is forming: following December's cut, the Federal Reserve is widely expected to keep interest rates unchanged at its January 28th meeting.
The "Hawkish" Shift:
Internal Dynamics: More FOMC members are likely to oppose a fourth consecutive cut, strengthening the hawkish camp.
Voter Rotation: Key hawkish voters (Schmid, Goolsbee) will be replaced by Beth Hammack (Cleveland Fed) and Lorie Logan (Dallas Fed), who hold similar cautious views on inflation.
Moderate Balance: New voters Neel Kashkari and Anna Paulson will provide a moderate counterweight, but not enough to force a January move.
Market Takeaway:
This solidifies the "pause and assess" narrative. The Fed wants more data—especially on inflation trends and labor market health—before committing to further easing. March remains the critical meeting to watch for the next potential policy shift.
Are you trading the "January Hold" as a certainty?
