Fed leaves rates unchanged, sees 'somewhat elevated' inflation and stabilizing job market
(VOVWORLD) - The Federal Reserve held interest rates steady on Wednesday amid what US central bank chief Jerome Powell described as a solid economy and diminished risks to both inflation and employment, an outlook that could signal a lengthy wait before any further reductions in borrowing costs.
 US Federal Reserve Chair Jerome Powell speaks during a press conference following a two-day meeting of the Federal Open Market Committee (FOMC) on interest rate policy, in Washington, DC, US, January 28, 2026. (Photo: REUTERS/Jonathan Ernst) |
"The economy has once again surprised us with its strength," Powell said at a press conference after Fed policymakers voted 10-2 to hold the central bank's benchmark interest rate in the 3.5%-3.75% range following a two-day meeting.
Noting broad internal support for the decision, Powell said the Fed remains "well-positioned" to assess when or whether another rate cut may be needed.
President Donald Trump has criticized the Fed and Powell for failing to deliver the large rate cuts the president believes are needed to stimulate the economy.