The Slow March to Neutral

BOSTON, MA, November 7, 2024 — The Federal Open Market Committee (FOMC) met today to assess the state of the U.S. economy and monetary policy.

What We Learned

Following up on its 50-bps rate cut in September, the FOMC lowered the Federal Funds Target Rate by 25 bps to 4.50-4.75%, matching market expectations. Inflation data has slowly progressed to the Fed’s 2% target but remains somewhat elevated, especially in the services sector. Employment remains firm, despite hurricane and labor strike impacts. The totality of the data signals a mixed picture, and the Fed continued its well telegraphed easing cycle. The pace and magnitude of future adjustments remains data-dependent and is subject to change meeting to meeting.

To receive the full commentary, please contact us at [email protected].