The Fed May ‘Stand Pat’ on Rates Until June

Currently, the first Fed meeting with a market bet for a cut is in June.

Federal Reserve Chairman Jerome Powell speaks during a news conference at the end of the two-day Federal Open Market Committee (FOMC) meeting at the Federal Reserve in Washington on Jan. 29, 2025. Andrew Caballero-Reynolds/AFP via Getty Images

Commentary

The market’s record-breaking surge led to a widely-anticipated pause on Feb. 20 and 21 after Trump’s tough talk on Ukraine and tariffs, and after the Fed released their minutes on Feb. 19 of the January Federal Open Market Committee (FOMC) meeting, revealing that “the vast majority” of FOMC members judged that the risks to their dual-mandate objectives were “roughly in balance.”