In a highly anticipated decision, the Federal Reserve opted to keep interest rates unchanged during its first meeting of 2026. The Federal Open Market Committee (FOMC) voted 10 to 2 to maintain the baseline interest rate range at 3.5 to 3.75 percent. This decision comes despite unprecedented pressure from President Trump to lower rates further, as reported by CBS News and Quartz.
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The move by the Fed was widely expected by both markets and observers, but it is still likely to draw ire from the White House. President Trump has been vocal in his criticism of the Fed’s monetary policy decisions, often calling for more aggressive rate cuts to stimulate economic growth. The decision to hold rates steady is seen as a sign of the Fed’s commitment to its independence and mandate to promote stable prices and maximum employment.
Fed Chair Jerome Powell is expected to address the public shortly to provide further insights into the decision and the committee’s outlook on the economy. The decision to maintain interest rates reflects the Fed’s cautious approach in the face of economic uncertainties, including inflationary pressures and geopolitical tensions.
Despite the political backlash and ongoing criminal probe, the Fed remains focused on its dual mandate of fostering economic stability and growth. The decision to keep rates steady underscores the Fed’s commitment to data-driven decision-making and its role as an independent institution.
Overall, the Fed’s decision to hold interest rates steady in the face of political pressure highlights the importance of maintaining the central bank’s independence and credibility. The move is expected to have far-reaching implications for financial markets and the broader economy in the coming months.
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References:
– CBS News. (2026, January 28). Fed holds interest rates steady in first meeting of 2026. https://www.cbsnews.com/news/fed-meeting-fomc-interest-rate-decision-january-28/
– Quartz. (2026, January 28). The Fed holds interest rates steady despite unprecedented pressure from Trump. https://qz.com/federal-reserve-fomc-january-2026-interest-rate-decision-powell-trump
– The Hill. (2026, January 28). Fed keeps rates steady amid Trump backlash, criminal probe. https://thehill.com/business/5710800-federal-reserve-interest-rates/
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