U.S. Federal Reserve Chair Jerome Powell addressed the media following a two-day meeting of the Federal Open Market Committee (FOMC) on January 28, 2026, in Washington, D.C. The meeting concluded with anticipated outcomes and no major revelations during Powell's press briefing. Here are five key points to note:
The Decision
As expected, the FOMC opted to hold the federal funds rate steady within the 3.5%-3.75% range. This decision marks an end to a series of three rate cuts and suggests the central bank may not be eager to reduce rates soon.
The Dissents
Continuing a trend seen over the last six months, several committee members disagreed with the majority. Governors Stephen Miran and Christopher Waller preferred an additional quarter percentage point cut. Notably, Miran shifted from his past stance where he supported half-point reductions.
Powell's Press Conference
The post-meeting press conference was largely uneventful. Powell consistently declined to comment on political issues, emphasizing staying out of elected politics. He conveyed expectations of solid economic growth with a temporary uptick in inflation due to tariffs, alongside a stable but constrained labor market.
Market Reaction
The stock market remained largely unchanged, with traders factoring a 60% probability of two more minor rate cuts within the year.
Expert Opinions
Ellen Zentner, chief economic strategist for Morgan Stanley Wealth Management, remarked, "The Fed delivered a rate cut, but it arrived in a somewhat hawkish package. The Fed hasn't shut the door on further cuts, but Chair Powell has raised the bar for further action..."
Heather Long, chief economist at Navy Federal Credit Union, added, "It's détente at the Fed for now. But a shakeup is coming with the new Fed Chair in May."
Charlie Ripley, senior investment strategist for Allianz Investment Management, observed, "Perspectively speaking, we saw this meeting as an affirmation from the Fed of what investors were already thinking..."