Fed to hold interest rates steady but start considering cuts

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Key Points

The Federal Reserve will likely hold interest rates steady for a fourth straight meeting but avoid signaling an imminent interest-rate cut...

The Federal Open Market Committee is poised to keep rates in a range of 5.25% to 5.5% at its two-day policy meeting ending Wednesday, a 22-year high first reached in July..

Powell is likely to be pressed on whether the Fed is considering rate cuts for March and if the committees median forecast in December for three quarter-point reductions this year is still a good reflection of officials views..

Dallas Fed President Lorie Logan said earlier this month the central bank may need to slow the pace at which it shrinks its portfolio of assets amid scarcer liquidity in financial markets...

The January meeting also brings a rotation of new voters among the central banks regional presidents, including Bostic, Cleveland Fed President Loretta Mester, the San Francisco Feds Mary Daly and Richmonds Thomas Barkin...

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