Fed’s January Minutes Reveal Hawkish Turn Ahead of Leadership Shake-Up

[johnblockbuster]

The Federal Reserve released minutes from its January meeting showing a surprisingly hawkish tone among policymakers. The Federal Open Market Committee (FOMC) voted 10-2 on January 28 to hold interest rates steady at 3.5%–3.75%, but the discussion revealed deeper divisions beneath the surface.

Governors Christopher Waller and Stephen Miran dissented, favoring a quarter-point cut due to concerns about labor market softness. However, most officials signaled caution, emphasizing the need for clearer evidence that inflation is firmly returning to the Fed’s 2% target before easing policy further.

Notably, several participants suggested that the post-meeting statement should reference possible “upward adjustments” to the federal funds rate — a direct signal that rate hikes remain on the table if inflation proves persistent.

[madmax]

waller and miran asking for a cut while the rest of the room said not so fast