US EditionFederal Reserve meets Wednesday for its first interest rate decision of 2026. Here's what to expect.
The Federal Reserve maintains rates amid inflation above 2% and a weakening labor market while facing political pressure and legal scrutiny, economists say.
- At 2 p.m. on Jan. 28, the Fed will announce its rate decision and hold a press conference with Jerome Powell, with expectations to keep rates unchanged, according to FactSet poll.
- Facing mixed data, the Federal Reserve weighed a weakening labor market and inflation above the 2% inflation target while facing political pressure from President Donald Trump and Justice Department scrutiny earlier this month.
- Roger Ferguson said `Overall, the Fed just wants to stand pat. They feel they've got time to wait and see`, Michael Gapen noted labor market stabilization supports the pause, and Matt Schulz added loan rates remain low.
- Consumers and businesses may not feel much impact if the Fed holds rates steady, as borrowing costs have eased; Jerome Powell is likely to stress Fed independence and confidence in the Supreme Court on Wednesday.
- Markets currently expect the Fed to cut once or twice this year, most likely in June and December, while President Donald Trump could soon announce a successor to Powell, reshaping Fed leadership.
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17 Articles
The US unemployment rate fell to 4.4% in December
The US Federal Reserve does not change the key rate. The interest rate margin remains between 3.50 and 3.75 percent.
As expected, and the market discounted, the US Federal Reserve has decided this Wednesday to keep interest rates at 3.50-3.75 per cent. After three...
Any indications of the next steps of monetary policy will be closely observed by market participants
The best requirement a central banker can meet is predictability. Jerome Powell, the president of the Federal Reserve of the United States, likes to stick to the script so as not to alter investor confidence. So as expected, the Fed has decided this Wednesday to keep interest rates intact in a range between 3.5% and 3.75 per cent after three consecutive rebates at the end of last year. This is the first meeting of the Fed since Powell denounced …
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