WASHINGTON — At the conclusion of its meetings today, the Federal Reserve on Wednesday kept its benchmark interest rate unchanged, marking the central bank’s first policy decision of 2026 and signaling a pause in a series of rate cuts last year.
The Federal Open Market Committee chose to maintain the federal funds rate in a target range of 3.50% to 3.75%, leaving borrowing costs where they have stood since December.
Fed officials said the decision reflects a cautious “wait-and-see” approach as recent economic data show mixed signals: inflation remains above the central bank’s 2% goal, even as the labor market continues to show signs of slowing.
“After significant adjustments in the second half of last year, we believe it is appropriate at this time to hold our policy rate steady and evaluate how the economy evolves,” Fed Chair Jerome H. Powell said in a statement following the announcement.
Political Pressure
As the CU Daily has been reporting, the decision comes amid ongoing economic uncertainty and growing political pressure on the central bank. President Donald Trump and other administration officials have urged the Fed to lower rates more aggressively to support growth.
Wednesday’s pause follows three consecutive quarter-point reductions in 2025 as the Fed sought to counter cooling economic activity without sparking renewed inflation.
