Federal Reserve policymakers were mostly in agreement on the decision to leave interest rates unchanged despite two calling for cuts, though several signaled that rate hikes could be on deck if inflation remains elevated. The minutes for the January meeting of the Federal Open Market Committee (FOMC), the Fed's monetary policy-setting panel, were released on Wednesday and showed that some policymakers were in favor of including language signaling the possibility of future rate hikes to tame stubborn inflati ...

Market Overview - The ASX is expected to rise, influenced by significant gains in the U.S. markets, particularly in tech stocks, with the Nasdaq gaining +0.78% [2] - Oil prices are a topic of discussion, with traders speculating on U.S.-Iran talks and potential American intervention [3] Company Earnings Reports - Telstra (ASX:TLS) reported an +8% increase in first-half profits, totaling $1.2 billion, with dividends rising to 10.5 cents per share [4] - Medibank (ASX:MPL), Australia's leading private health insurer, experienced a slight decline in net profit, down to $298 million, attributed to "increasing diversification" across sectors [4] - Transurban (ASX:TCL) showed a strong rebound in CY25, benefiting from increased traffic on toll roads and reduced maintenance costs, although Melbourne's traffic remains below pre-COVID-19 levels [5] Other Companies to Watch - Major companies reporting include Rio Tinto (ASX:RIO), Wesfarmers (ASX:WES), Whitehaven (ASX:WTC), Iluka Resources (ASX:ILU), Goodman Group (ASX:GMG), Zip Co (ASX:ZIP), and Electro Optic Systems (ASX:EOS) [5]

Several Federal Reserve officials anticipate further interest rate cuts if inflation were to drop, while others see holding rates for "some time," according to minutes of the central bank's January policy meeting released Wednesday. "Several commented that further downward adjustments to the target range for the federal funds rate would likely be appropriate if inflation were to decline in line with their expectations," the minutes read. Still others thought that more rate cuts may not be needed until ...

Group 1 - Several participants indicated support for a two-sided description of future interest rate decisions, suggesting the possibility of upward adjustments due to inflation concerns [1] - Officials expect inflation to decrease this year, but the pace and timing remain uncertain, with factors such as tariffs and housing prices influencing this outlook [2] - Some companies are automating operations to offset price increases, but progress towards the 2% inflation objective may be slower and more uneven than expected [3][10] Group 2 - Labor market conditions show signs of stabilization, with diminished downside risks, although concerns remain about labor supply [5][18] - Consumer spending is resilient, driven largely by higher-income consumers, while lower-income spending remains soft [6] - There are concerns about high asset valuations and low credit spreads, with vulnerabilities noted in the private credit sector and hedge funds [6][7] Group 3 - The focus of the January meeting shifted from jobs to inflation, with several participants noting the potential for inflation to stabilize at a higher than desired level [9][11] - The discussion included the impact of tariffs on prices, with concerns that tariff-related price increases may not fade as quickly as anticipated [10] - The economic burden of tariffs is primarily borne by U.S. companies and consumers, with various studies indicating that 90% or more of the costs are passed on to them [14][15]

Many Federal Reserve officials want to see inflation fall further before they would support additional interest rate cuts this year, particularly if the job market continues to stabilize, minutes of last month’s meeting show.The “vast majority” of the 19 participants on the Fed’s rate-setting committee said that there were signs the job market has stabilized, after the unemployment rate rose in late 2025, the minutes said. And most of the officials agreed that the Fed’s key rate is close to a level that nei ...

Core Viewpoint - The Federal Reserve is likely to maintain its current interest rate levels for an extended period unless there is a rapid decline in the labor market or a significant decrease in inflation [1] Group 1 - The Federal Reserve's decision to hold rates is contingent on labor market conditions and inflation trends [1] - Current economic indicators suggest stability, allowing the Federal Reserve to adopt a wait-and-see approach [1]

Bitcoin has emerged as the biggest underperformer since the release of the FOMC minutes for the January 28 meeting, while the US dollar index and bonds rally. The January FOMC meeting, which saw two dovish dissents, reflected a deeply divided Federal Reserve (Fed). Fed Minutes Reveal Hawkish Divide as Bitcoin Struggles Almost all policymakers supported maintaining the federal funds rate at 3.50–3.75%, though a couple preferred a 25-basis-point cut, citing restrictive policy and labor market risks. http ...

Group 1 - Some officials are advocating for more neutral language regarding future rate cuts, indicating a cautious approach to monetary policy adjustments [1]

Minutes of the Federal Reserve's first meeting of the year showed that several officials wanted the central bank to tell the market that there was a chance its next move might be to raise interest rates. ...

Divided Federal Reserve officials at their January meeting indicated that further interest rate cuts should be paused for now but could resume later in the year only if inflation cooperates.While the decision to hold the central bank's benchmark rate steady mostly was met with approval, the path ahead appeared less certain, with members conflicted between fighting inflation and supporting the labor market, according to minutes released Wednesday from the Jan. 27-28 meeting."In considering the outlook for mo ...