US Fed not declaring victory over inflation prematurely, with pause in rate cut cycle

The reasons for the pause in cuts are ample; data disruptions due to the government shutdown last year have left us with an unclear assessment of where inflation is, let alone where it is going, writes KPMG US Chief Economist Diane Swonk.

The United States (US) Federal Open Market Committee (FOMC) decided to pause its rate cutting cycle, despite ongoing pressure from the US Administration. The decision was contentious, with two governors dissenting in favour of a rate cut. Governor Stephan Miran dissented in favour of a quarter-point cut in his last vote before returning to his job at the helm of the Council of Economic Advisers for the White House. Governor Chris Waller, who is a dark horse candidate to replace Chairman Je...

Sign in below or register now to read the full article

Authors: Diane Swonk

Published Date: 30 January 2026