Fed Holds Key Rate Steady In First Policy Meeting Of 2026 Despite Trump’s Mounting Pressure
Synopsis
The Federal Reserve kept rates steady at 3.50%–3.75% in its first move in 2026, after delivering three consecutive 25-bps rate cuts last year.
The Federal Reserve on Wednesday held its benchmark interest rates steady in its first policy meeting of 2026, on the back of encouraging labor market data and stabilizing unemployment rate.
The Fed announced that it will hold key interest rates at 3.50% - 3.75%, in line with market expectations.
“Available indicators suggest that economic activity has been expanding at a solid pace. Job gains have remained low, and the unemployment rate has shown some signs of stabilization. Inflation remains somewhat elevated,” the Federal Reserve said in a statement.
The move comes after three consecutive 25-bps rate cuts in September, October, and December 2025 amid rising inflation and growing unemployment at the time. In its latest update, the Fed noted that inflation still remains somewhat elevated.
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