The Fed’s Policy Landing Zone: From Tightening to Stabilization
January 14, 2026
After two years of aggressive tightening and volatile funding conditions, the Federal Reserve appears to be guiding the rates market toward a temporary policy “landing zone.” Recent FOMC meetings signal a shift from active restraint to calibrated stabilization, with the Fed freezing balance-sheet runoff in Treasuries and outlining a plan to ensure bank reserves remain firmly in the “ample” category. The federal funds rate in the mid-3% range is beginning to look closer to neutral, even as policymakers maintain a data-dependent posture. Read on to learn more: Link
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