As anticipated, the Federal Open Market Committee (FOMC) has decided to leave its target rate for fed funds unchanged, maintaining the rate at 5.50% as established during the July 26, 2023, meeting.
It was mentioned several times before that the Fed would seek several months of solid data before considering the much-anticipated pivot, despite this morning’s Consumer Price Index (CPI) report showing a lower-than-expected inflation rate.
The Federal Reserve is currently grappling with mixed economic signals. Earlier this month, the jobs report exceeded expectations, while inflation has recently shown signs of cooling.
Pay close attention to Fed Chair Powell’s press conference at 2:30 ET for further insights into future policy directions.
Sven Franssen