Fed's Rates Pause Won't Last, ANZ Says -- Market Talk

Dow Jones01-14

0536 GMT - The U.S. Federal Reserve will likely keep interest rates on hold in January, but an extended pause in the rate-cutting cycle isn't justified, says Brian Martin, Head of G3 Economics at ANZ. It will be appropriate for the Fed to resume rate cuts soon, and the FOMC will likely cut the Fed funds target rate by 25 basis points in March and another 25 basis points in June, taking the target rate to 3.00%-3.25% by mid-year. U.S. inflation will moderate gradually during 2026 as the earlier effects of tariff price increases fade, wage growth moderates and shelter price inflation cools, Martin says. (james.glynn@wsj.com; X @JamesGlynnWSJ)

 

(END) Dow Jones Newswires

January 14, 2026 00:36 ET (05:36 GMT)

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