The United States Federal Reserve announced on January 29, 2026 that it decided to leave interest rates unchanged following its first policy meeting of the year, signaling a cautious approach as officials continue to assess inflation trends and overall economic performance.
In its statement, the Federal Open Market Committee said recent data showed inflation continuing to moderate while economic growth remained uneven across sectors. Policymakers indicated that maintaining current rates would allow more time to evaluate the effects of earlier monetary tightening on consumer spending, employment and financial conditions.
Federal Reserve Chair Jerome Powell said the decision reflected a balance between controlling inflation and avoiding unnecessary pressure on economic activity. He noted that while progress had been made toward price stability, risks remained from global economic uncertainty and volatile energy markets.
Markets reacted calmly to the announcement, with investors largely expecting the central bank to hold rates steady at this meeting. Analysts said attention is now shifting to upcoming economic data releases that could influence future policy decisions later in the year.
The Federal Reserve reiterated that future rate moves would depend on incoming data rather than a fixed timeline, underscoring its data driven approach as 2026 begins
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