What changes are there in the full comparison with the Federal Reserve's January meeting statement?

On January 29, Wednesday, the Federal Reserve maintained its stance as expected, keeping the federal funds rate target range at 4.25% to 4.50%. The Federal Reserve's statements regarding the labor market and inflation have changed compared to the December meeting.

In this statement, the Federal Reserve indicated that the unemployment rate remains stable at a low level, and the labor market conditions remain robust. In contrast, the statement from December noted that "labor market conditions are generally loose, the unemployment rate has risen, but remains low." The Federal Reserve also removed the phrasing that inflation has made progress toward the committee's 2% target but remains elevated, now stating that inflation levels are still slightly high.

As we enter the new year of 2025, there is a significant turnover in the Federal Reserve voting members. Richmond Fed President Barkin, Atlanta Fed President Bostic, San Francisco Fed President Daly, and Cleveland Fed President Mester will not have voting rights in the new year. Notably, Cleveland Fed President Mester cast the only dissenting vote in December's meeting, preferring to keep rates unchanged.

The new voting members of the FOMC for 2025 include: Boston Fed President Collins, Chicago Fed President Goolsbee, St. Louis Fed President Bullard, and Kansas City Fed President George.

The full translation of the statement is as follows:

The black text indicates parts that are the same as the December 2024 FOMC meeting statement, with additional explanations in black text in parentheses provided by Wall Street Insight, and the red text indicates new additions for January 2025, while the blue text in parentheses indicates wording removed from the December statement (please indicate the source when reprinting):

Recent indicators suggest that economic activity continues to expand steadily. In recent months, the unemployment rate has remained stable at a low level, and labor market conditions remain robust. (Earlier this year, labor market conditions were generally loose, and the unemployment rate had risen but remained low.) Inflation levels are still slightly high. (Inflation has made progress toward the committee's 2% target but remains elevated.)

The committee seeks to achieve maximum employment and a 2% inflation rate over the long term. The committee believes that the risks to achieving employment and inflation targets are broadly balanced. Economic prospects are uncertain, and the committee is attentive to the dual risks facing its dual mandate.

To support its objectives, the committee decided to maintain the federal funds rate target range at (down 0.25 percentage points to) 4.25% to 4.50%. In considering the degree and timing of any future adjustments to the federal funds rate target range, the committee will carefully assess incoming data, evolving outlooks, and risk balances. The committee will continue to reduce its holdings of U.S. Treasury securities, agency debt, and agency mortgage-backed securities. The committee is firmly committed to supporting maximum employment and returning inflation to its 2% target.

In assessing the appropriate monetary policy stance, the committee will continue to monitor the impact of the latest information on the economic outlook. If risks emerge that could impede the achievement of its goals, the committee will be prepared to adjust its monetary policy stance as appropriate. The committee's assessment will reference a wide range of information, including labor market conditions, inflation pressures and expectations, as well as data on financial and international developments

The voters in favor of this monetary policy include: FOMC Chairman Jerome H. Powell, Vice Chairman John C. Williams, Thomas I. Barkin, Michael S. Barr, Raphael W. Bostic, Michelle W. Bowman, Susan M. Collins, Lisa D. Cook, Mary C. Daly, Austan D. Goolsbee, Philip N. Jefferson, Adriana D. Kugler, Alberto G. Musalem, Jeffrey R. Schmid, and Christopher J. Waller. The dissenting vote came from Beth M. Hammack, who preferred to maintain the federal funds rate target range at 4.50% to 4.75% during this meeting.

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