🔔 Powell & the Fed: rate stability, cautious message

During the FOMC meeting on January 28, 2026, Jerome Powell, Chairman of the Federal Reserve, confirmed that the Fed is keeping interest rates unchanged in the range of 3.50%–3.75%, ending a series of rate cuts after three consecutive reductions last year. Investing.com

🧠 Key points of the speech

✅ Rates maintained — no immediate change, reflecting a patient policy. Ventura Securities

📊 Inflation still above target — although it tends to decrease, it remains above the 2% target.

👔 Labor market stabilized but not strong — employment shows signs of stabilization without a net acceleration.

📈 Dependence on economic data — the Fed will make its future decisions on a case-by-case basis depending on incoming data.

đŸ€ Fed independence affirmed — Powell reiterated the importance of an independent central bank despite political pressures.

📌 Implications

  • The USD slightly strengthened after the announcement, as the absence of a new rate cut reduces expectations for quick monetary easing.

    Stock markets reacted moderately, reflecting a cautious expectation rather than a net bullish or bearish shock.

    The Fed suggests that future rate decisions will depend on economic data, not a fixed timetable.

#fomc #Fed