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Central Bank Decisions In January

US Federal Reserve – Hold
US Federal Reserve – Hold

The Federal Reserve decided to maintain the target range for the federal funds rate at 1-1/2 to 1-3/4 percent on January 29, keeping rates unchanged for the second straight meeting after three straight quarter-point rate cuts.

The unanimous decision to leave rates unchanged was widely expected by economists, as Fed officials have signaled the central bank will remain on hold for the foreseeable future unless there is a material shift in the economic outlook.

In his post-meeting press conference, Fed Chairman Jerome Powell acknowledged that some of the uncertainties around trade have diminished following the signing of the phase one U.S.-China trade deal.

Powell noted that some uncertainties about the global economic outlook remain, however, with the Fed chief specifically pointing to the new coronavirus outbreak.

CME Group's FedWatch Tool currently indicates at 76.1 percent chance that the Fed will leave rates unchanged at its next meeting in March.

Next policy session: March 17-18

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