TD Securities’ Global Strategy Team reviews the recent FOMC meeting, where the Federal Reserve maintained rates at 3.50%-3.75%. The statement was marginally hawkish, with Chair Powell indicating that the Fed can be patient and let data guide future decisions.

FOMC meeting and economic data outlook

« While we maintain our call for a March cut, it is clear that the risk is for the Fed to stay on hold for longer. We will revisit our call after the January employment report. »

« The Committee will likely wait for either additional labor market weakness or confirmation of the one-off tariff inflation impact before resuming cuts. The likelihood of the latter catalyst is rising. »

« Marginally hawkish flavor in the FOMC statement helped the USD, but we expect any USD bounces to be short-lived and see upside in EUR, AUD, GBP, SEK. »

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)