FOMC: Confidently Watching and Waiting

BOSTON, MA, January 31, 2024 — The Federal Open Market Committee (FOMC) met today to assess the state of the U.S. economy and monetary policy.

What We Learned

At its 2024 inaugural meeting, the FOMC left the Federal Funds Target Rate (fed funds) unchanged at 5.25-5.50%, an outcome widely anticipated by markets. The decision demonstrated that the Committee continues to watch data closely to balance the risks of easing prematurely and inflation remaining above the 2% target vs. moving too slowly and causing a recession with an unnecessarily restrictive policy. Although inflation continues to move in the Fed’s preferred direction, it is still not quite at a level where the Fed feels confident to signal the “all clear.”

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