🏛️ Federal Reserve releases January meeting minutes

The Fed's internal discussions remain divided. Most officials support pausing the rate-cut cycle, keeping interest rates at 3.5%-3.75% after the rate cuts at the end of 2025.
There is a split on policy priorities:
🔸 The majority want to wait for more inflation data before easing further.
🔸 Emphasize the risk of a weakening labor market if rates stay high for too long.
🔸 The Fed acknowledges inflation is cooling but stresses that returning to the 2% target could be slow and uneven.
-> A Fed pause does not mean a pivot but a temporary halt before further rate cuts. The unemployment rate not increasing further means the Fed is not committed to the next rate path.
The market is now starting to price in the next rate cut in June ( instead of January and March as previously expected)