“still high inflation”. Today it’s up to the ECB

As widely awaited, no surprise from Fed that pulls the brake – after three consecutive cuts -keeping the target interval unchanged for the interest rate at 4.25%-4.5%.

Fed. The break arrives

Recent indicators suggest that “The economic activity continued to expand at a sustained rhythm – reads the statement – The unemployment rate has stabilized at a low level in recent months and the conditions of the labor market remain solid. Inflation remains rather high “.

The Federal Open Market Committee (FOMC) – the committee that decides on monetary policy – believes that the risks for achieving its occupation and inflation objectives are “more or less in balance”. The economic perspectives are “uncertain “and the committee is attentive to the risks for both parts of its double mandate.

The Committee is said “ready to adapt the position of monetary policy As appropriate if risks emerge that could prevent the achievement of the objectives “, with the evaluations that will take into account a wide range of information, including readings on the conditions of the labor market, inflationary pressures and inflation expectations, and financial and international developments .

“The new year saw the Fed enor in a “new phase” of its own monetary ease, with sustained growth and solid data relating to the labor market that have made it possible to adopt a more patient approach in a context of high uncertainty of data and policies “, underlines Lindsay Rosner, Head of Multi Sector Fixed Investing of Goldman Sachs Asset Management specifying that it continues to consider “that the Fed loosening cycle has not taken its course, but we also believe that the FOMC” will want to see further improvements in the data on inflation for to be able to carry out the next cut of the ratesas highlighted by the removal of the reference to the progress of inflation “.

Spotlight on the ECB

Today, meanwhile, the spotlight on the ECB ready – instead – to a further scissor of 0.25%. In December 2024, the ECB board confirmed that “it will continue to follow an approach led by the data on the basis of which the decisions are defined from time to time to each meeting” and “without binding to a particular route of the rates”.