Fed officials send united message on January interest-rate cut
thestreet.com • • general
Key Points:
- Federal Reserve regional presidents, including Chicago Fed President Austan Goolsbee, indicated on January 15 that inflation pressures are prompting a pause in interest-rate cuts, citing a stabilizing labor market and ongoing concerns about rising costs and affordability.
- The Federal Reserve's dual mandate requires balancing inflation control and maximum employment, with the current benchmark Federal Funds Rate at 3.50% to 3.75%, and the neutral rate estimated between 2.5% and 3% (excluding inflation).
- The Fed's next meeting on January 27-28 shows only a 5% chance of a rate cut, with median projections suggesting one additional 25 basis point cut in 2026, while traders expect two or three cuts
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