The Federal Reserve's Federal Open Market Committee (FOMC) has decided to keep the benchmark interest rate unchanged today, January 28, 2026, in a target range of 3.5% to 3.75%. This marks the first meeting since July 2025 that the Fed did not cut rates.
Financial Overview:
The decision to hold rates steady was widely expected by markets and follows three consecutive rate cuts in late 2025 to manage the economic effects of a softening labor market and persistent inflation. The current federal funds rate is a benchmark that influences borrowing costs on various consumer loans, including mortgages and credit cards.
The vote was not unanimous, with two officials, Stephen Miran and Christopher Waller, dissenting in favor of an immediate 0.25% rate cut. Fed Chair Jerome Powell is scheduled to hold a press conference at 2:30 p.m. EST today to provide further details and context on the decision.
