• Last month’s decision to cut rates was a ‘close call’
• The economic outlook is much different now than it was when the Fed started cutting interest rates last year
• The risk that inflation could get stuck between 2.5% and 3% has increased

This is in line with their current policy stance as they are willing to pause on rate cuts, possibly until the end of the first quarter of this year. As things stand, market players are pricing in the first full 25 basis point interest rate cut which will be in June next with a ~42 basis point rate cut for this year. We’ll see how that changes after the US jobs report later today.

This article was written by Justin Low at www.forexlive.com.



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