Federal Reserve Holds on Interest Rates for First Time Since July

Washington, DC, January 29, 2026-"The Federal Reserve entered a new holding pattern on interest rates Wednesday and signaled little urgency to resume cuts after contentious reductions at officials’ three previous meetings,” reports the Wall Street Journal.

“The decision to hold the benchmark federal-funds rate steady in a range between 3.5% and 3.75% was approved on a 10-2 vote.

“Fed Chair Jerome Powell said recent data had painted a somewhat brighter picture than officials had at their last meeting, with stronger economic growth and tentative signs of labor-market stabilization. 

“The comments suggest officials are comfortable staying put for some time-until new signs of labor-market weakness emerge or inflation convincingly makes progress toward the Fed’s goal.   

“‘We’re not trying to articulate a test for when to next cut…What we’re saying is we’re well positioned,’ Powell said at a news conference.”