Latest / Markets with Megan: A Quick Financial Markets Update / The Latest on Fed's Stance and Economic Forecasts | S2 E006 | 01-29-25

Transcript

The Latest on Fed's Stance and Economic Forecasts | S2 E006 | 01-29-25 · Markets with Megan: A Quick Financial Markets Update

• 0:00
  Megan Horneman: This wasn't a surprise to any.
• 0:01
  Megan Horneman: The Fed came in today it is Wednesday, January the 29th and the Federal Reserve came in today and left interest rates unchanged.
• 0:09
  Megan Horneman: This is the first time, after three consecutive cuts, that they came in and kept interest rates unchanged.
• 0:15
  Megan Horneman: As we mentioned, this is widely expected.
• 0:17
  Megan Horneman: The inflation data that we got to end last year started to really show that slowing in progress on inflation.
• 0:25
  Megan Horneman: And then, from the labor market perspective, the annual revisions that we got showed that the labor market actually wasn't in that bad of shape when the Fed did originally start their rate cutting cycle.
• 0:34
  Megan Horneman: So basically, their statement made a lot of the same, some similar comments, mentioning there was no hurry to adjust policy stance.
• 0:42
  Megan Horneman: They think the risks to inflation and the policy goals are basically in balance.
• 0:47
  Megan Horneman: They did mention that they think the housing market has stabilized and then the labor market has cooled but remained solid.
• 0:54
  Megan Horneman: So some of those very similar things that we've seen in past meetings in their statement.
• 0:59
  Megan Horneman: But where we really like to take a look is at the press conference that he does and he got drilled quite a bit.
• 1:04
  Megan Horneman: If I could sum this press conference up into one word, it was really politics.
• 1:08
  Megan Horneman: He got pressed quite a bit on what the chairman believes will happen from a tariff perspective and what that will do to inflation, immigration, what will that do to the labor market, and he handled them very coolly and calmly, but he started to get a bit frustrated, in our opinion, with the questions, and we'll get more detail in their next meeting because by the time we have their March meeting we'll have a lot more information from the tariff perspective as well as from the immigration perspective.
• 1:37
  Megan Horneman: So we agree with the Fed.
• 1:39
  Megan Horneman: Let's just wait and see what actually comes through, what's a bargaining chip, what's not, and what may actually get implemented in the next four weeks here.
• 1:47
  Megan Horneman: That's all we have today.
• 1:49
  Megan Horneman: If you like this podcast, please subscribe.
• 1:51
  Megan Horneman: Hit that alarm bell.
• 1:53
  Megan Horneman: If you would like to see prior or past podcasts, please go on to marketswithmegan.
• 1:57
  Megan Horneman: fm.
• 1:59
  Megan Horneman: Thank you.