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
WATCH: Pritzker says receipts shown ‘all the time’ as audits show weaknesses
Pro life org to Congress: Hyde Amendment is non-negotiable
Florida joins redistricting push, schedules special session
Senate takes first vote to limit military action in Venezuela
Dem officials urge Trump EPA to keep Biden’s PFAS rules
Protests continue Thursday in Minneapolis; schools canceled
IL lawmaker critical of ‘illegal orders’ video as Pentagon moves to punish senator
Illinois quick hits: Tax receipts increase $1.5 billion year-over-year
WATCH: HHS tells Pritzker ‘show receipts’ on welfare spending; Energy bill to be signed
Cato scholar: Fraud being investigated in Minnesota likely occurring across U.S.
Supreme Court could rule on Trump’s tariff authority Friday
Glen Ellyn can’t enforce Airbnb rules vs owner who says was target
