#The Federal Reserve Keeps Interest Rates Unchanged The first FOMC meeting of 2026 has concluded, with policy on pause, but the market has begun to price in the “post-Powell era.”⏸️
📌 Key Decision Overview
· Interest Rate Decision: The target range for the federal funds rate remains unchanged at 3.50% - 3.75%.
· Policy Shift: This move pauses the consecutive three rate cuts since September 2025.
· Internal Disagreement: Among the 12 voting members, two Trump-appointed governors voted against, advocating for a 25 basis point rate cut.
🔍 Key Interpretations and Market Outlook
· Reason for Pause: The statement noted that economic activity is “expanding robustly” and removed previous references to “increased risks to employment.” The Federal Reserve believes more data is needed to assess the effects of the prior rate cuts and the inflation path before taking further action.
· Unclear Rate Path: Powell emphasized that the policy has “no predetermined path” and will be entirely “data-dependent” going forward. The market expects the next rate cut may be delayed until after Chairman Powell's term ends in May.
· Increased Political Pressure: This decision comes amid ongoing criticism of the Federal Reserve and Powell himself facing scrutiny from the White House. Powell notably defended the independence of the central bank at the meeting, stating that monetary policy should not be directly controlled by elected officials.
💎 Summary
This meeting represents not only a pause in policy but possibly a transitional period of an era. In the face of political uncertainty and economic data dynamics, the Federal Reserve has chosen to wait and see.
Do you think that before the arrival of the “post-Powell era,” the Federal Reserve's decision to hold steady will lead to a longer period of volatility in the crypto market, or could it create a window for a new trend?
