- Inflation has moved much closer to our longer-run goal, though it remains somewhat elevated
- 2024 GDP looks to have risen above 2%
- Investment in equipment appears to have slowed late in the year but was solid in 2024
- Labor market conditions remain solid
- Unemployment has stabilized, remains low
- Conditions in the labor market are broadly in balance, not a significant source of pressure
- Total PCE rose 2.6% in 12 months to Dec, and core 2.8%
- Risks to achieving our goals are roughly in balance
- We do not need to be in a hurry to adjust policy stance
- Policy is well-positioned
- Review of policy framework will wrap up by late summer
The comment on not being in a hurry is a key one and suggests a low likelihood of a move in March (the market was pricing in just at 22% chance of a cut).
This article was written by Adam Button at www.forexlive.com. Source