The #Federal Reserve is widely expected to keep interest rates unchanged at the conclusion of its two-day meeting today, January 28, 2026.
Market consensus points toward a "hawkish pause," maintaining the federal funds rate in its current range of 3.5% to 3.75%. This would mark the first time the Fed has held rates steady following three consecutive quarter-point cuts at the end of 2025. Key Factors Behind the Decision The "Wait and See" Approach: After the aggressive cuts late last year, Chair Jerome Powell indicated the committee is "well-positioned" to observe how the economy evolves. Sticky Inflation: While President Trump recently declared inflation "defeated," official data shows it remains stubbornly above the Fed’s 2% target (currently hovering near 3%). Stabilized Labor Market: Despite concerns over tariffs last year, the unemployment rate has stabilized around 4.4%, reducing the immediate pressure on the Fed to stimulate the economy with further cuts. Political Tension: The meeting is happening under significant political heat. The White House has been vocal about wanting lower rates, and the recent Justice Department subpoenas regarding Powell’s past testimony have added a layer of drama to today’s announcement. #FedRateDecisionApproaches #GoldBreaksAbove$5,200
The #Federal Reserve is widely expected to keep interest rates unchanged at the conclusion of its two-day meeting today, January 28, 2026.
Market consensus points toward a "hawkish pause," maintaining the federal funds rate in its current range of 3.5% to 3.75%. This would mark the first time the Fed has held rates steady following three consecutive quarter-point cuts at the end of 2025.
Key Factors Behind the Decision
The "Wait and See" Approach: After the aggressive cuts late last year, Chair Jerome Powell indicated the committee is "well-positioned" to observe how the economy evolves.
Sticky Inflation: While President Trump recently declared inflation "defeated," official data shows it remains stubbornly above the Fed’s 2% target (currently hovering near 3%).
Stabilized Labor Market:
Despite concerns over tariffs last year, the unemployment rate has stabilized around 4.4%, reducing the immediate pressure on the Fed to stimulate the economy with further cuts.
Political Tension:
The meeting is happening under significant political heat. The White House has been vocal about wanting lower rates, and the recent Justice Department subpoenas regarding Powell’s past testimony have added a layer of drama to today’s announcement.
#FedRateDecisionApproaches
#GoldBreaksAbove$5,200