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
Conservatives push Union Pacific–Norfolk Southern merger
Hamas agrees to release hostages; demands further negotiations
Report: Bipartisan support for K-12 open enrollment policy
‘End the political idiocy’: Republicans lambast Dems for tanking funding bill again
WATCH: U.S. military strikes another suspected drug boat, killing four
Des Moines Public School system hired superintendent with extensive criminal history
Pro-life group calls FDA’s approval of generic abortion pill ‘unconscionable’
USDOT puts $2.1 billion of taxpayer funds for CTA under review
No UPCODE Act could be part of shutdown solution … and more
Health care policy remains sticking point in Senate’s govt shutdown talks
ICE arrests 9 Chileans linked to South American theft group operating in NJ
WATCH: State police prepares ICE protest zones; energy policy debate continues
DHS blames ‘sanctuary’ politicians for ICE violence
