The U.S. Federal Reserve decided to keep its policy interest rates unchanged despite ongoing pressure from President Donald Trump to continuously push for rate cuts. Fed Chair Jerome Powell reaffirmed the Fed's independent stance, noting that inflation remains a key issue to monitor.
On 28 January 2026, Jerome Powell, Chair of the U.S. Federal Reserve, announced the decision from the Federal Open Market Committee meeting to maintain the policy interest rate at 3.5–3.75%. This came amid pressure from President Donald Trump, who called for rate cuts to stimulate the economy. This rate hold follows three consecutive rate reductions by the Fed since September.
Reports indicated that of the 12 voting committee members, 10—including Fed Chair Jerome Powell—voted to keep rates steady. Meanwhile, Stephen M. and Christopher W. dissented, proposing a 0.25% rate cut.
Chair Powell stated at the press conference that the Fed's current policy stance remains appropriate because inflation rates are still above desired levels, while the labor market is beginning to show signs of stabilization.He emphasized that the Fed is prepared to consider further policy adjustments in the future, based on the latest economic data, evolving trends, and changing risks. This reflects the Fed's commitment to an independent policy approach amid ongoing intense political pressure.
Source: CNN