Federal Reserve Holds Rates Steady at 3.50% to 3.75% in First Decision of 2026
The Federal Open Market Committee concluded its two-day meeting in Washington on January 28 and decided to maintain the target range for the federal funds rate at 3-1/2 to 3-3/4 percent, the first rate decision of 2026 and the first pause after three consecutive cuts in 2025. The action was approved by a vote of 10 to 2: Governors Stephen I. Miran and Christopher J. Waller voted against it, preferring to lower the target range by one-quarter percentage point at this meeting.
In its statement, the Committee said available indicators suggest economic activity has been expanding at a solid pace, job gains have remained low, the unemployment rate has shown some signs of stabilization, and inflation remains somewhat elevated. The Committee said it seeks maximum employment and inflation of 2 percent over the longer run, and that in considering the extent and timing of additional adjustments it will carefully assess incoming data, the evolving outlook and the balance of risks.
In the related implementation decisions, effective January 29, the interest rate paid on reserve balances is maintained at 3.65 percent and the primary credit rate at 3.75 percent; standing overnight repurchase agreement operations are to be conducted at 3.75 percent and standing overnight reverse repurchase agreement operations at an offering rate of 3.50 percent, with a per-counterparty limit of $160 billion per day.
Related: Federal Reserve Cuts Rates for a Third Time in 2025, Lowering the Target Range to 3.50% to 3.75%
Source: Federal Reserve
Published by GSM · USA (original Chinese edition)
Photo: 图：位于美国华盛顿的美联储总部马里纳·埃克尔斯大楼（Eccles Building）北侧立面。AgnosticPreachersKid 摄，CC BY-SA 3.0，经 Wikimedia Commons。 / Photo: The north side of the Marriner S. Eccles Building, headquarters of the Federal Reserve in Washington, D.C. By AgnosticPreachersKid, CC BY-SA 3.0, via Wikimedia Commons.
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