By Tom Burnett CFA
On January 29, 2025, the Federal Open Market Committee (“FOMC”) announced that it was leaving the Fed Funds rate at the current range of 4.25%-4.50%. The decision was unanimous among all 12 voting members. The Fed will continue to shrink its Balance Sheet by redeeming $25 billion of Treasury securities and $35 billion of mortgage-backed securities each month. The announcement repeated the Fed’s goal of a 2% going rate for inflation. The Fed sees a strong labor market that does not need stimulation through lower interest rates.
The next FOMC meeting is set for March 19, 2025.
Tom Burnett CFA is Director of Research