The Fed's target interest rate level remains unchanged at 5.25% - 5.50% after the most recent FOMC meeting this week. Concerning the future path of interest rates and recent inflation data in the US, Powell stated [these] "haven't really changed the overall story, which is that of inflation moving down gradually on a sometimes bumpy road toward 2%."  Expectations of the first rate cut this year now center around the June 2024 meeting. Stocks rallied this week around optimism that the fed will be successful in orchestrating a soft landing for the US economy, pushing the S&P 500 towards its 20th record level this year.

The Next FOMC Meeting is January 31, 2024 with an 93.3% probability of no rate hike and 6.7% chance of a 25 basis point rate cut, according to CME Group's FedWatch Tool. Treasury yields rose after data showed US companies ramped up hiring in December and jobless claims came in lower than estimates, potentially indicating a slower normalization of rates. Citigroup, Inc. announced yesterday that it is closing its municipal bond division due to concerns with diminished fees. The CEO stated it is "no longer viable given our commitment to increase the firm's overall returns" and intends to completely wind down operations by the end of the first quarter.

The Next FOMC Meeting is January 31, 2024 with an 93.3% probability of no rate hike and 6.7% chance of a 25 basis point rate cut, according to CME Group's FedWatch Tool. Treasury yields rose after data showed US companies ramped up hiring in December and jobless claims came in lower than estimates, potentially indicating a slower normalization of rates. Citigroup, Inc. announced yesterday that it is closing its municipal bond division due to concerns with diminished fees. The CEO stated it is "no longer viable given our commitment to increase the firm's overall returns" and intends to completely wind down operations by the end of the first quarter.