【Epoch Times News on January 29, 2026】On Wednesday, January 28, the Federal Reserve announced that it would maintain its interest rates, keeping the federal funds rate between 3.5% and 3.75%. This decision came after three consecutive rate cuts by the Fed.
During the Federal Open Market Committee (FOMC) meeting that concluded on Wednesday, while voting to keep rates unchanged, the Fed also raised its expectations for U.S. economic growth. Additionally, the committee lowered its concerns about the labor market compared to inflation.
In its post-meeting statement, the Fed noted, “Current indicators suggest that economic activity has been steadily expanding. Job growth remains slow, and there are some signs of stability in the unemployment rate. Inflation remains at a slightly elevated level.”
It is worth noting that the statement omitted previous concerns about the committee’s view that the risks of a soft labor market were higher than those of worsening inflation. This indicates a shift towards a more patient approach as officials believe the Fed is more balanced in its dual goals of low inflation and full employment.
Regarding the next steps in monetary policy, little explicit guidance was provided, with the market expecting the Fed to wait until at least June before any further rate adjustments.
The statement stated, “In determining the timing and size of future adjustments to the target range for the federal funds rate, the Committee will assess a range of data, the evolving economic outlook, and risks to the outlook.” The statement reiterated language from December 2025, which was seen by the market as signaling a departure from the loose policy cycle that began in September 2025.
Similar to recent meetings, there were dissenting votes this time as well. Federal Reserve Board members Stephen Miran and Christopher Waller voted against maintaining the current rates, advocating for another 25 basis points rate cut.
The FOMC meeting that concluded on Wednesday marked the third-to-last meeting chaired by Jerome Powell before his term ends in May. President Trump has been considering Powell’s successor for months, leading to speculation that an announcement might be imminent.
According to recent odds from Polymarket, some popular candidates for the position include Rick Rieder, Chief Investment Officer of BlackRock, Kevin Warsh, former Fed governor, and Christopher Waller, a current Fed governor supporting rate cuts.
Every January, regional seats of the FOMC rotate, bringing in new voting members to assist the committee, which is composed of 12 members, in setting rates. The four new voting members appointed for the first meeting of 2026 are Neel Kashkari, President of the Minneapolis Fed; Anna Paulson, President of the Philadelphia Fed; Beth Hammack, President of the Cleveland Fed; and Lorie Logan, President of the Dallas Fed.
The U.S. dollar strengthened on Wednesday, continuing its upward trend. Previously, U.S. Treasury Secretary Scott Bessent stated that the U.S. follows a strong dollar policy and will not intervene in the foreign exchange market. Part of the selling spree on Tuesday was attributed to the President’s remarks expressing a lack of concern about a depreciation of the dollar.