CIO Market Update Audiocast: Market Insights from the CIO

Markets remain volatile and news is changing rapidly. Listen to our audio program featuring insights from the Chief Investment Office to stay up to date.

The Federal Reserve opted to pause its interest rate cuts at its January 29, 2025, meeting, keeping the benchmark rate at 4.25% to 4.5%. This decision follows three rate cuts in 2024 and reflects the Fed’s cautious approach as it weighs inflation concerns against employment stability. Market expectations, which initially anticipated four cuts in 2025, have adjusted to possibly one or none.

Chris Hyzy, Chief Investment Officer at Merrill and Bank of America Private Bank, emphasized that future cuts will depend on economic data, particularly inflation trends and labor market conditions. The Fed’s decision aligns with recent increases in 10-year Treasury yields, which signal a strong economy and persistent inflation pressures. Markets had largely anticipated this pause, viewing it as a measured step rather than a shift in policy direction.You can catch Hyzy’s market insights weekly on the CIO’s Market Update audiocast.