Home Latest Articles Summary The Fed’s decision to hold rates steady at 3.50%–3.75%, following 75 basis points (bps) of cuts late last year, signals a continued data-dependent pause rather than urgency to adjust policy despite geopolitical and inflation uncertainties. Resilient labor market conditions and still elevated core inflation, exacerbated by recent energy price increases, leave the Fed balancing its dual mandate while likely looking through temporary geopolitical-driven price shocks. With Kevin Warsh poised to become the next Fed Chair, markets may need to recalibrate expectations, as policy is likely to remain data-driven with the easing cycle approaching its conclusion rather than accelerating further cuts. MicroStockHub/iStock via Getty Images By Kevin Flanagan For the third consecutive policy gathering, the Federal Open Market Committee (FOMC) decided to remain ‘on hold,’ keeping the fed funds trading range at 3.50%–3.75%. This result was largely expected by the markets.…