2026 US Fed Meeting LIVE: No Rate Cut Today! Jerome Powell’s FOMC Stuns Market by Keeping Rates Steady at 3.50-3.75%
On January 28, 2026, the U.S. Federal Reserve convened to discuss its monetary policy, highlighting the ongoing challenges and uncertainties facing the economy. Chair Jerome Powell addressed concerns regarding the Federal Reserve’s independence, stating emphatically, “We haven’t lost it… I certainly hope we won’t.” This declaration comes amidst increasing pressure from political figures, including President Donald Trump, who has frequently urged the Fed to implement significant rate cuts.
During his remarks, Powell also addressed the impact of geopolitical risks, noting that current instability has primarily influenced oil prices. However, he remarked, “So far, with all the turmoil, oil prices have come down, and so we don’t really see much” in terms of direct economic ramifications.
Furthermore, Powell tackled the implications of artificial intelligence (AI) on employment. He indicated that large corporations are either slowing their hiring processes or laying off employees, often attributing these decisions to advancements in AI. “We’re all watching and learning,” he noted, cautioning that this trend could pose significant risks to the economy and the workforce.
The Federal Reserve maintained its benchmark interest rates in the range of 3.50% to 3.75% amid persistent inflationary pressures and stable economic growth. The ongoing inflation, recorded at 2.8% as of November 2025, remains above the Fed’s target of 2%. In light of this, Powell explained that tariffs have been a primary driver of price increases, stating, “Most of the overrun in goods prices is from tariffs… If it weren’t for tariffs, it might mean it’s from demand, and that’s a harder problem to solve.”
As for future interest rate adjustments, Powell asserted that no decisions have been made regarding potential cuts, emphasizing the Fed’s commitment to achieving maximum employment and stable prices. He explained that while job growth has slowed, factors such as declines in the labor force and participation rates contribute to this trend. Available data shows that job gains have diminished, evidenced by stable unemployment rates.
The Fed’s deliberations come on the heels of its previous rate cuts, including a 25 basis point reduction made in December 2025, designed to combat elevated inflation levels. Powell reflected on the challenges these cuts present, stating that the Fed must evaluate incoming data, the evolving economic outlook, and the broader spectrum of risks.
Moreover, Powell’s address revealed the committee’s concern over economic activity. While consumer spending remains robust, the housing sector continues to exhibit weakness. The Fed’s dual mandate-to promote maximum employment and ensure stable prices-guides its ongoing assessment of these economic indicators.
As the Federal Reserve embarks on this pivotal year, marked by heightened scrutiny and potential leadership changes (with Powell’s term ending in May), it remains focused on navigating the complex economic landscape. The next few months will be crucial in determining how monetary policy adapts to the shifting economic tides and geopolitical challenges.
Overall, the Federal Reserve’s decisions reverberate widely across financial markets, influencing not only local economic conditions but also global economic interactions. Investors and analysts alike await the unfolding implications of the Fed’s strategies, particularly given the uncertainty characterizing today’s economic climate.
Original Source: https://www.livemint.com/market/stock-market-news/us-fed-meeting-live-updates-jerome-powell-fomc-policy-decision-today-dow-jones-futures-trump-28-january-2026-11769600170302.html
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Publish Date: 2026-01-29 01:49:00
