Committee decided to maintain the target range for the federal funds rate.
Federal Funds rate currently stands at 3.5-3.75% following three 25bp cuts in late 2025.
speaker2
speaker1
There was broad support on the committee for holding today.
Market does not anticipate a cut in the first three meetings of 2026 according to CME FedWatch tool.
speaker2
Median projection anticipates Fed funds rate easing modestly by year-end 2026, implying roughly one 25bp cut over the course of the year.
speaker2
speaker1
Well positioned to determine extent and timing of additional adjustments to policy rate based on incoming data, evolving outlook, and balance of risks.
CME interest rate futures align with a gentle downward drift, but Fed has emphasized flexibility with quarterly SEP updates next in March, potentially revising outlook based on evolving conditions.