The Federal Reserve held its benchmark interest rate steady on Wednesday, pausing a recent series of cuts as officials cited stronger economic growth and easing labor market risks.
The Federal Open Market Committee voted to keep rates in a 3.5 percent to 3.75 percent range, ending three consecutive quarter-point reductions.
Policymakers raised their outlook for economic growth and signaled greater confidence that employment conditions are stabilizing, while noting inflation remains above target.
BREAKING: The Federal Reserve held interest rates steady on Wednesday, ending a string of three consecutive quarter-point rate cuts as the central bank grapples with a combination of elevated inflation and sluggish hiring. https://t.co/5HV9uQNfMB pic.twitter.com/iKSR5q3bYl
— ABC News (@ABC) January 28, 2026
The Fed also removed language suggesting labor market risks outweighed inflation concerns, indicating a more balanced view of its dual mandate. Markets now expect no rate changes until at least June.
Treasury yields rose after the decision, while stocks were little changed. Two Trump-appointed governors dissented, favoring another rate cut.
Chair Jerome Powell said recent data point to a stronger forecast, even as the Fed faces political pressure and ongoing questions over its independence.
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TIPP Staff
TIPP Staff
