Fed Thoughts
Fed Thoughts: Knock on Wood
Fed Thoughts White Paper
January 2025
Authors & Contributors
Federal Reserve (Fed) policy decisions are in a holding pattern as the Fed waits to learn more about the new administration’s plans. However, a holding pattern still has effect—knock on wood.
The market ended 2024 with forecasts for inflation and appropriate policy rates shifting up. Now, with the unknowns of a new administration, the Fed is actively waiting to see how the government will put decisions into place before making monetary policy moves.
Discover our take on current economic conditions, examine how flexible and sticky prices are influencing inflationary movement, and review which pending decisions by the new administration the Fed is likely watching most—including tariffs, border patrol, tax changes and relaxing key regulations.
