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US Fed Maintains Interest Rates, Decision in Line With Market Expectations
US Federal Reserve: The US Federal Reserve kept interest rates unchanged in the range of 3.50% to 3.75% at its January monetary policy meeting. The Fed stated that inflation remains somewhat elevated, while employment growth is slow, but there are signs of stabilization in the labor market.
The US central bank, the Federal Reserve, has decided to retain its interest rates as they are, at least for now, as announced in its latest monetary policy meeting. The US Federal Reserve retained its key rates between 3.50% and 3.75% after its latest monetary policy meeting held on January 27-28.
In a statement issued on January 28, the Federal Open Market Committee (FOMC) stated that considering the economic objectives, the committee has decided to maintain the target range for the federal funds rate at its current level. This decision has been in line with market expectations.
Ten out of the 12-member committee voted in favor of a stable interest rate policy, but Governors Waller and Miron voted in favor of a 25-basis-point interest rate cut. This indicates an easing in monetary policy.
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Fed Chairman Jerome Powell stated at a press conference that the US economy is entering 2026 on a strong footing. He noted that the economic outlook has clearly improved since the last meeting, and that the labor market is showing signs of stability.
Powell also stated that monetary policy is currently in an appropriate position and that the Fed will continue to make decisions based on data. He emphasized that policymaking will be based on changing economic conditions at each meeting.
The Fed's statement noted that inflation remains somewhat elevated, while job creation has been slow. However, the unemployment rate is showing signs of stabilization.
The Fed clarified that any future interest rate changes will be determined based on incoming economic data, the balance of risks, and global conditions. The central bank also reiterated its commitment to its twin goals of maximum employment and price stability, with a long-term inflation target of 2 percent.
It is worth noting that at its December 2025 meeting, the Fed cut interest rates by 25 basis points, bringing them to current levels. Investors and global markets are now focused on the Fed's next meeting, scheduled for March 17-18.
