Fed holds rates steady at 1st 2026 meeting
Updated 1/29/2026 9:12:00 AM
Arab Finance: The US Federal Reserve kept interest rates unchanged during its first meeting in 2026, maintaining its benchmark rate in the 3.50% to 3.75% range, according to a statement by the Federal Open Market Committee (FOMC).
Chair Jerome Powell said economic conditions remain supportive, and risks to inflation and employment have declined, suggesting no urgency for further rate cuts.
Speaking after the FOMC voted 10 to 2 to hold rates following a two-day meeting, Powell stated the Fed is “well-positioned” to evaluate whether additional policy adjustments will be needed.
“The economy has once again surprised us with its strength,” he said, while noting that risks, although reduced since the Fed’s December meeting when it delivered a third consecutive rate cut, have not fully disappeared.
“The upside risks to inflation and the downside risks to employment have diminished. But they still exist. We think our policy is in a good place,” Powell added.
The Fed’s policy statement offered no indication on the timing of any future rate cuts, saying that “the extent and timing of additional adjustments” would depend on incoming data and the economic outlook.
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