AI Data Insight
At its January meeting, the Federal Reserve (Fed) decided to maintain the federal funds rate target at 3.75% (3.50%-3.75%), ending a cycle of three consecutive rate cuts since September last year. Although economic data shows the job market stabilizing, a divergence emerged within the decision-making body, with two officials casting dissenting votes arguing for continued rate cuts to support labor demand. The market is now turning its attention to the rate cut path in mid-2026, anticipating room for 1 to 2 rate cuts throughout the year.