Federal Reserve Likely to Hold Rates Steady

Central bank to wait and see as economy shows signs of health

Jan. 28, 2026 at 6:31am

Got story updates? Submit your updates here. ›

Federal Reserve officials are expected to keep their short-term interest rate unchanged on Wednesday, ignoring pressure from the White House for lower borrowing costs. The central bank will wait to see how the economy evolves before making any further rate changes, with the rate-setting committee split on the need for additional cuts this year.

Why it matters

The Federal Reserve's interest rate decisions have a significant impact on the broader economy, affecting everything from consumer and business borrowing to inflation and employment. The central bank's stance will signal its assessment of the economy's health and its willingness to provide further stimulus.

The details

The Federal Reserve is widely expected to hold its benchmark federal funds rate steady at the conclusion of its two-day policy meeting on Wednesday. This comes after the central bank cut rates three times last year in an effort to support the economy. However, the Fed's rate-setting committee remains divided, with some officials opposed to further cuts until inflation reaches the central bank's 2% target, while others want to lower rates further to boost hiring.

  • The Federal Reserve will announce its policy decision on Wednesday, January 29, 2026.

The players

Federal Reserve

The central banking system of the United States, responsible for monetary policy and regulating the nation's financial system.

Jerome Powell

The current Chair of the Federal Reserve, appointed in 2018.

Got photos? Submit your photos here. ›

What’s next

The Federal Reserve's next policy meeting is scheduled for March 17-18, 2026, where the central bank will have another opportunity to adjust interest rates.

The takeaway

The Federal Reserve's decision to hold interest rates steady reflects its cautious approach to the economy, as it waits to see how conditions evolve before making any further adjustments to monetary policy. This highlights the central bank's balancing act between supporting economic growth and keeping inflation in check.