Fed keeps interest rates steady in first meeting of 2026
The Federal Reserve kept interest rates steady in its first meeting of 2026, as economists expected.
Federal Reserve officials kept lending rates between 3.5-3.75% after issuing three cuts last year. In a statement, officials pointed to low job gains and stabilization in the unemployment rate behind their decision.
Officials urged a return to the 2% inflation rate and increasing employment numbers. The January inflation report, based on December 2025 data, revealed a 2.7% inflation rate.
In December 2025, the unemployment rate was 4.4%.
“The Committee’s assessments will take into account a wide range of information, including readings on labor market conditions, inflation pressures and inflation expectations, and financial and international developments,” Federal Reserve officials wrote in a statement.
Two governors on the board, Stephen Miran and Christopher Waller, voted against keeping the rates steady, instead suggesting lowering rates by 0.25%. The nine other members of the board voted to keep rates unchanged, including Chair Jerome Powell.
Powell is expected to hold a press conference on the decision Wednesday afternoon.
Mostly Sunny
Latest News Stories
Will County Sees 50% Drop in Opioid Deaths, But Alarming Rise in Suicides
Will County Board Backs Effort to Rename ‘Stigmatizing’ Chicago Sanitary and Ship Canal
Access Will County Dial-a-Ride on Track for Full County-Wide Service in 2026
Arizona congressman calls for end to government shutdown
WATCH: Pritzker continues encouraging ICE protests after Guard blocked
Illinois quick hits: Ag incentives announced; Cook County announces increased budget
Senator urges Rubio to move forward designating Antifa a foreign terror organization
Divided Will County Board Authorizes Condemnation for 143rd Street Widening
Former board member expressed concerns about indicted DeKalb superintendent
Trump administration begins axing positions of furloughed federal workers
Fiscal Fallout: Illinois has among highest-paid state employees
Report: State reliance on federal funds up significantly since 1990s
Southwest low on list of safest states; Northeast at the top
Washington state attorney general agrees to protect seal of confession
