Powell expected to hold rates in Fed’s first 2026 decision amid DOJ probe
Federal Reserve Chair Jerome Powell will announce the Fed's first interest-rate decision of 2026 at 2 p.m. ET, with CME FedWatch predicting a near-total chance the central bank will hold rates steady. Markets were mixed ahead of the decision: as of about 6:30 a.m. ET futures for the three major US indexes were higher, with the Nasdaq signaling nearly a 1% rise, the S&P 500 up about 0.4%, and the Dow up less than 0.1%.
In Europe, the FTSE 100 was about 0.5% lower and Germany’s DAX down roughly 0.2%. Precious metals were rallying, with Business Insider reporting gold extended gains by about 3% to trade just under $5,300 an ounce and silver rising about 5.4% to near $111 an ounce. Powell is making the announcement amid heightened political pressure: he has faced attacks from President Donald Trump and announced on Jan.
11 that the Fed received a grand-jury subpoena. The Justice Department probe alleges Powell committed perjury over testimony about Fed building renovations; Business Insider obtained a letter Powell privately sent to senators that it says matches his testimony. Powell said, "The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the president." The Federal Open Market Committee has penciled in one rate cut for 2026 after opting for three quarter-point cuts last fall.
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