Fed Holds Rates Steady as Unemployment StabilizesJohn Carney
28 Jan 2026
The Federal Reserve held interest rates unchanged on Wednesday in a 10-2 vote, with officials pointing to signs of stabilization in the labor market as they signaled a pause in monetary easing.
The Federal Open Market Committee maintained the benchmark federal funds rate in a range of 3.5 percent to 3.75 percent, following three consecutive quarter-point cuts at the end of 2025. Governors Christopher Waller and Stephen Miran dissented, favoring a quarter-point reduction.
The split decision shows that the Fed remains divided. December’s meeting saw three dissents, but officials voted in different directions, with two opposed any cut and one favored a larger reduction.
In its post-meeting statement, the committee said “job gains have remained low, and the unemployment rate has shown some signs of stabilization.” Officials also dropped language from previous statements that had flagged “increased downside risks to employment.”
The changes reflect an improved assessment of labor market conditions. The unemployment rate currently stands at 4.4 percent, historically low by pre-pandemic standards. The rate had risen to 4.5 percent in November.
The committee also upgraded its view of economic growth, describing the pace as “solid” compared to “moderate” in previous statements. Officials removed a reference to inflation having moved up, though the statement still notes that “inflation remains somewhat elevated.”
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https://www.breitbart.com/economy/2026/01/28/fed-holds-rates-steady-as-unemployment-stabilizes/
