Federal Reserve expected to hold interest rates steady Wednesday

The Federal Reserve is expected to hold interest rates steady at its first meeting of the year on Wednesday, Jan. 28, 2026. The Fed will release a policy statement alongside its rate decision at 2 p.m. in Washington, and Chair Jerome H. Powell will hold a news conference at 2:30 p.m.

The expected pause follows three consecutive quarter-point reductions that began in September. Rates were cut in the latter half of 2025 to a range of 3.5 percent to 3.75 percent, and the decision to stand pat reflects the central bank’s view that it can afford to take more time to determine its next steps.

Those rates are now considered to be in the realm of “neutral,” meaning they are low enough to no longer be as restraining on the economy but not so low as to be revving up growth. Most officials still see a path to cut rates further this year, though the timing and magnitude of any moves are yet to be determined.

The Fed’s confidence in pausing has been bolstered by a rosier economic outlook. A few months ago many officials were more concerned about the labor market; those concerns remain but are much more muted, and growth is expected to hold up better than many economists had earlier predicted.

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