Federal Open Market Committee meeting: Live coverage

January 28, 2026 1:30 PM

WASHINGTON — The Federal Reserve's interest rate-setting body will announce its near-term plans Wednesday, with markets overwhelmingly anticipating that rates will be left unchanged in the face of uncertain economic conditions.

The Federal Open Market Committee began its two-day deliberations Tuesday and will announce its decision at 2 p.m. Wednesday. The CME Fedwatch tool, which tracks market expectations for FOMC decisions, shows that 97.2% of participants expect rates to remain unchanged, with the remaining 2.8% anticipating a 25 basis point cut.

Fed Chair Jerome Powell suggested after December's 25 basis point cut — the third quarter-point cut in the past three meetings — that the central bank would likely adopt a wait-and-see approach to further cuts in 2026. That stance, he said, would be the most prudent choice in the face of economic data that shows both a cooling labor market and persistently above-target inflation readings.

"Having reduced our policy rate by 75 basis points since September and 175 basis points since last September, the fed funds rate is now within a broad range of estimates of its neutral value, and we are well positioned to wait to see how the economy evolves," Powell said during December's FOMC press conference.

Inflation came in at 2.7% in December, remaining considerably above the Fed's 2% target but broadly in line with prior months. At the same time, the labor market showed signs of cooling, with employers adding just 50,000 jobs last month.

Federal Reserve

Fed likely to keep rates steady as economy shows mixed signals

January 28, 2026 6:00 AM

Some members of the FOMC — including Fed Vice Chair for Supervision Michelle Bowman and Minneapolis Federal Reserve Bank President Neel Kashkari — voiced concern about the labor market, signaling potential divisions among policymakers ahead of this month's meeting.

"The labor market can appear to be stable right up until it doesn't," Bowman said in a mid-January speech. "Absent a clear and sustained improvement in labor market conditions, we should remain ready to adjust policy to bring it closer to neutral."

7 Posts

24m ago

Powell's advice to successor: stay out of politics

By Maria Volkova

Federal Reserve Chair Jerome Powell

Bloomberg News

Federal Reserve Chair Jerome Powell, in one of his last appearances as the head of the central bank, gave advice to his future successor: stay out of politics.

"Don't get pulled into elected politics," warned Powell. "Don't do it."

The Fed chair said that the "passive burden" for the central bank is to go to Congress and talk to the people, which is primary obligation. "If you want democratic legitimacy, you earn it by your interaction with our elected overseers, and so [that's] something you need to work hard at," Powell said.

36m ago

Powell defends 'common practice' of central bank independence

By John Heltman

Federal Reserve Board Gov. Jerome Powell

Federal Reserve Chair Jerome Powell

Bloomberg News

Federal Reserve Chair Jerome Powell, who had already deflected questions about the White House's efforts to exert greater control over monetary policy, said that central bank independence is an important governing principle that all advanced economies share in common.

"The point of independence is not to protect policymakers or anything like that," Powell said. "It just is that every advanced economy, democracy, in the world has come around to this common practice. It's just an institutional arrangement that has served the people well, and that is … to not have direct elected official control over the setting of monetary policy."

Powell added that the public's trust that monetary policy — and by extension the value of their money — will be navigated by a professional rather than political body is a difficult trust to regain once it is lost.

"I think if you lose that … it would be hard to restore the credibility of the institution. If people lose their faith that we're making decisions only on the basis of our assessment of what's best for everyone — for the wide public, rather than trying to benefit one group or another — if you lose that, it's going to be hard to retain it. We haven't lost it. I don't believe we will. I certainly hope we won't, but it's very important, and the reason it's important is that it's enabled central banks generally — not to be perfect — but to serve the public."

42m ago

Powell pointed to 'broad support' of policy despite dissents

By Maria Volkova

Federal Reserve Board Chairman Jerome Powell

Federal Reserve Chair Jerome Powell

Bloomberg News

Federal Reserve Chair Jerome Powell said during the post-FOMC press conference that there was overwhelming support among committee members to keep interest rates unchanged, despite the two dissents cast by Fed Gov. Stephen Miran and Gov. Christopher Waller, who preferred a 25 basis point cut.

"There was broad support on the committee for holding today, including among non-voters," Powell said, referring to non-voting regional Fed bank presidents who serve on the committee.

The Fed chair noted there is agreement that the tension between employment and inflation is "less than it was," adding that risks to both have "diminished a bit."

Powell said that the Fed rate-setting committee is "well positioned, as we make decisions, meeting by meeting, looking at incoming data, evolving outlook and all that." "We'll find our way forward as the data evolves," he added.

53m ago

Powell declines to elaborate on DOJ inquiry, tenure

By John Heltman

Federal Reserve Chair Jerome Powell

Bloomberg News

Federal Reserve Chair Jerome Powell deflected a series of questions from reporters about the Justice Department's ongoing investigation into the central bank and his plans to resign or remain on the board after his chairmanship expires in May.

When asked about his Jan. 11 statement acknowledging that the central bank had received subpoenas concerning Powell's Congressional testimony concerning ongoing renovations to the Fed Board headquarters in Washington, Powell said he has nothing more to elaborate.

"I'm simply going to refer you to the statement that I made on January 11. I'm not going to expand on it or repeat it," Powell said, adding that he has no additional information as to whether the central bank has responded to the subpoenas. "I have nothing for you on that today."

Powell was also asked whether he intends to remain on the Fed Board after his term as chair expires in May. Powell, who has declined to answer the same question many times before, did not tip his hand Wednesday.

"I — really, once again — have nothing for you on that today," Powell said. "There's a time and place for these questions, but [it's] not something I'm going to be getting into today."

Powell: attending SCOTUS hearing 'appropriate thing to do'

Federal Reserve Gov. Lisa Cook, center, and her attorney Abbe Lowell, left, outside the Supreme Court in on Wednesday, Jan. 21.

Bloomberg News

Fed Chair Jerome Powell said he attended the Supreme Court's hearing of Fed Gov. Lisa Cook's case earlier this month because "it was an appropriate thing to do," but declined an invitation to expound more broadly on the case.

Speaking during his post-FOMC press conference Wednesday, Powell said Cook's case is "perhaps the most important legal case in the Fed's 113-year history."

"As I thought about it, I thought it might be hard to explain why I didn't attend," the Fed chair added.

He also brushed away addressing criticism levied his way by Treasury Secretary Scott Bessent over his attendance. Powell said he doesn't "respond to comments by other officials, whoever they may be," and dubbed it as inappropriate to do so.

FOMC keeps rates unchanged

Federal Reserve Chair Jerome Powell

Bloomberg News

The Federal Open Market Committee voted 10-2 to keep short-term interest rates unchanged Wednesday, with two members of the panel casing dissenting votes.

Fed Gov. Stephen Miran, who has pushed for greater rate cuts since being confirmed in September, and Gov. Christopher Waller voted against the action, both preferring a 25 basis point reduction to interest rates.

The FOMC's decision to keep the target range for the policy rate between 3.5% to 3.75% was widely expected by market watchers, and suggests that the central bank wants to get further clarity about the economic outlook.

Since September 2025, the Fed's rate-setting committee reduced the policy rate by 75 basis points, moves that are meant to boost the flagging labor market and support consumer spending.

In its policy statement, the committee highlighted that economic activity appears to be expanding "at a solid pace," adding that the unemployment rate shows signs of stabilizing and inflation remains "somewhat elevated."

"In considering the extent and timing of additional adjustments to the target range for the federal funds rate, the committee will carefully assess incoming data, the evolving outlook, and the balance of risks," the FOMC said in a press release Wednesday.

FOMC decision comes amid high-stakes fight for the Fed

Federal Reserve Chair Jerome Powell.

Bloomberg News

The Federal Reserve's routine interest rate meeting comes as the central bank is in the center of a legal battle over the exact contours of its institutional independence from the White House — a battle whose outcome could have profound implications for the global economy.

The Supreme Court last week heard oral arguments on an emergency motion by the Department of Justice to remove Fed Gov. Lisa Cook from her post pending the outcome of her lawsuit challenging President Trump's efforts to remove her. While a majority of the justices appeared unconvinced of the merits of the White House's emergency petition, the ruling could have important implications for the independence of the central bank.

Powell has frequently rebuffed reporters' questions about President Trump's open conflict with the Fed and kept his thoughts about the president to himself. But when the Department of Justice opened an investigation into Powell related to his testimony last year regarding an ongoing renovation project at the Fed's Washington headquarters, he released a video statement decrying the investigation and concerns about the renovations as "pretexts" to more openly control monetary policy.

"This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions — or whether instead monetary policy will be directed by political pressure or intimidation," Powell said.

Powell's term as chair expires in May, but his term as Fed governor does not expire until January 2028. Powell has characteristically demurred whenever asked about whether he plans to remain on the board after his chairmanship expires. But after speaking out in connection with the Justice Department's investigation, he is sure to be asked about his plans again during today's press conference — and he may have more to say.

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	About John
twitter	JohnHeltman
mailto	john.heltman@arizent.com
linkedin	john-heltman-84b6b4a

	About John
twitter	JohnHeltman
mailto	john.heltman@arizent.com
linkedin	john-heltman-84b6b4a