MAS Holds Monetary Policy Steady as Strong Growth Raises Inflation Risks 
Japan Declines Comment on BOJ’s Absence From Global Support Statement for Fed Chair Powell. Source: Asturio Cantabrio, CC BY-SA 4.0, via Wikimedia Commons 
Morgan Stanley Flags High Volatility Ahead for Tesla Stock on Robotaxi and AI Updates 
Elon Musk’s Empire: SpaceX, Tesla, and xAI Merger Talks Spark Investor Debate 
FxWirePro- Major Crypto levels and bias summary 
New York Fed President John Williams Signals Rate Hold as Economy Seen Strong in 2026 
Fed Confirms Rate Meeting Schedule Despite Severe Winter Storm in Washington D.C. 
Markets React as Tensions Rise Between White House and Federal Reserve Over Interest Rate Pressure 
ECB Signals Steady Interest Rates as Fed Risks Loom Over Outlook 
Overview of December 2024 FOMC Meeting Minutes
Minutes of the last FOMC meeting which occurred between December 17-18, 2024 were released on January 8, 2025, providing key insights about the economy and monetary policy. The Committee thinks that inflation is coming down while economic growth has been satisfactory. The labor market is also seen as excellent. The majority of the members did indicate that recent monthly data on inflation does indicate stabilization and going back to the 2% inflation level. They further pointed out that the labor market is not tight compared to pre-pandemic levels and therefore is closer to maximum employment.
Policy decisions on Interest rates
A majority of FOMC members agreed to lower interest rates by 50 basis points closer to the recent economic indicators, although some preferred a reduction of 25 basis points. The minutes explained that further aggressive rate cuts are unlikely to follow, which calls the larger cut more of an adjustment than an emergency to stem economic trouble. Future cuts are going to be gradual if conditions continue to improve as expected.
Impact on financial markets and Economic Outlook
Historically, the FOMC minutes have significantly affected U.S. asset prices and trading volumes. While asset price volatility is high, the market's reaction to the minutes has softened over time with the FOMC's increasing transparency. In general, the December 2024 FOMC meeting minutes convey a careful but optimistic view of the economy, calling for the delicate task of controlling inflation while supporting growth through careful policy changes.
