Holds rates steady amid rising economic uncertainty, no rush to cut
The Federal Reserve extended its rate cut pause for a second straight meeting, keeping the target range at 4.25% to 4.50%, as expected. While the decision was unanimous, Chris Waller dissented on the QT decision, preferring to maintain the current pace of balance sheet drawdown.
Fed speak: A somewhat dovish pause. The statement had minor but notable changes, with the key shift being a slowdown in the balance sheet runoff. The Fed also acknowledged that “uncertainty around the economic outlook has increased,” referencing Trump’s trade policies.
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