The Federal Reserve kept the federal funds rate unchanged at 4.25% to 4.50%, with only minor adjustments to its statement, slightly softening language around uncertainty. While updated projections showed higher expected inflation for 2025, the Fed still signalled a total of 50 basis points in rate cuts. Chair Jerome Powell emphasised caution, acknowledging the limitations of forecasting and stating that the FOMC is “well-positioned to wait to learn more” before making further policy moves.

Read Neil Shankar’s commentary

Neil Shankar

Neil Shankar is CI Global Asset Management’s Economist, responsible for monitoring key macroeconomic trends and shaping CI GAM’s economic outlook. He actively participates in investment and asset allocation discussions, helping guide decision-making. With over 10 years of industry experience, Neil joined CI GAM in 2024 after holding similar roles at other major Canadian financial institutions. Neil holds an MA in Business Economics from Wilfrid Laurier University and a BA (Honours) in Economics from The University of Western Ontario.

Information provided is general information and is for educational purposes only, and does not include, or constitute as, financial product advice.