We already published a comprehensive FOMC preview of what is largely expected to be a dovish pause when the Fed reveals its decision at 2pm ET today in what some have dubbed the "least anticipated Fed meeting in recent history", and in which the Fed officials are expected to leave interest rates steady this week after three straight rate cuts (which coincided with the last few months of Biden's presidency), giving themselves more time to lower inflation and to assess how President Donald Trump’s policies will affect the economy.
But for those who missed it and/or are strapped for time, here is a snapshot of what we the Fed is likely to say today.
Fed watchers don’t expect the FOMC to make many changes to their post-meeting statement. The current wording referring to the “extent and timing of additional adjustments” already gives policymakers flexibility to change their approach, as needed, based on what happens with the economy, according to Gregory Daco, chief economist for EY. Morgan Stanley believes that the Fed will underscore the strength of the labor market - especially after the unexpectedly strong December payrolls print - with unemployment still low, while keeping the rest of the statement largely unchanged, which is why the Fed will pause as the following proposed FOMC statement redline from the bank shows.
