The US Federal Reserve, led by Jerome Powell, announced the outcome of its two-day policy meeting on Wednesday, January 28, 2026, deciding to keep interest rates unchanged.
“In support of its goals, the Committee decided to maintain the target range for the federal funds rate at 3-1/2 to 3-3/4 per cent,” the Federal Open Market Committee said in its statement.
The decision comes after the central bank reviewed key economic indicators, including inflation trends, labour market conditions, and overall economic activity. According to the FOMC, available indicators suggest that economic activity has been expanding at a solid pace, while job gains have remained low and the unemployment rate has shown signs of stabilisation. The committee noted that inflation remains somewhat elevated.
Market participants had widely expected the Federal Reserve to keep rates steady at this meeting, despite reports suggesting pressure from the Trump administration to push for rate cuts. The decision signals the Fed’s cautious approach as it continues to assess incoming economic data and the evolving balance of risks.
In its previous meeting held on December 10, 2025, the Federal Reserve had reduced its benchmark interest rate by 25 basis points, bringing the target range down to 3.50%–3.75% amid elevated inflation and signs of weakness in the US job market.
Following the latest announcement, all eyes are now on Jerome Powell’s post-meeting remarks and press conference, where further clarity on the central bank’s policy outlook is expected.
