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The central bank is expected to hold interest rates steady on Wednesday after a series of reductions in the latter half of 2025. The big question is how long the pause will last.
Jan. 28, 2026, 5:03 a.m. ET
The Federal Reserve is expected to hold interest rates steady at its first gathering of the year.
The decision on Wednesday reflects the central bank’s view that after three consecutive quarter-point reductions, which began in September, it can afford to take a bit more time to figure out its next steps. The Fed will release a new policy statement alongside its rate decision at 2 p.m. in Washington. Jerome H. Powell, the Fed chair, will hold a news conference at 2:30 p.m.
Rates, which were reduced in the latter half of 2025 to a range of 3.5 percent to 3.75 percent, are now considered to be in the realm of “neutral” — meaning they are low enough to no longer be restraining the economy as much as in the past but not so low that they are revving up growth either.
Most officials still see a path to cut rates further this year. But the timing and magnitude of those moves are yet to be determined.
