The Federal Open Market Committee (FOMC) voted in a split decision to hold its benchmark interest rate in the range of 3.5% to 3.75%, following three consecutive rate cuts late last year.1
In a statement, the FOMC indicated concerns about the labor market had eased among policymakers, writing, “Available indicators suggest that economic activity has been expanding at a solid pace” and that the unemployment rate had “shown some signs of stabilization.”2
With inflation treading water above the Fed’s target, job growth stabilizing and gross domestic product expansion above expectations, the central bank is under less economic pressure to cut rates than it was toward the end of 2025.1
Tracking US Interest Rates
The federal funds target rate, the midpoint in the range set by the Fed for interest rates, remained the same in January. holding steady at 3.625%.
1: thehill.com
2: forbes.com