Federal Reserve Holds Interest Rates Steady at 3.75%
The Federal Reserve announced its latest monetary policy decision on Wednesday, January 28, 2026, following the conclusion of its first meeting of the year. The central bank decided to keep interest rates unchanged within the target range of 3.5% to 3.75%.
The decision was largely in line with market expectations, with investors assigning a 97% probability to a pause. The move effectively ends a series of three consecutive interest rate cuts implemented toward the end of last year.
The rate hold was announced amid ongoing debate within the Federal Open Market Committee (FOMC). While the committee broadly agreed to maintain the current policy stance, two members dissented, arguing in favor of an additional 25-basis-point rate cut.
The outcome highlights the Federal Reserve’s cautious approach as it balances moderating inflation against evolving economic conditions early in 2026.
