January 29, 2025 at 07:31PM
Inflation has moved much closer to our longer-run goal, though it remains somewhat elevated
2024 GDP looks to have risen above 2%
Investment in equipment appears to have slowed late in the year but was solid in 2024
Labor market conditions remain solid
Unemployment has stabilized, remains low
Conditions in the labor market are broadly in balance, not a significant source of pressure
Total PCE rose 2.6% in 12 months to Dec, and core 2.8%
Risks to achieving our goals are roughly in balance
We do not need to be in a hurry to adjust policy stance
Policy is well-positioned
Review of policy framework will wrap up by late summer
The comment on not being in a hurry is a key one and suggests a low likelihood of a move in March (the market was pricing in just at 22% chance of a cut).
This article was written by Adam Button at www.forexlive.com.