Thursday 29 / January / 2026
Washington: The US Federal Reserve on Wednesday announced that it will keep interest rates unchanged.
The central bank will keep the target range for the federal funds rate between 3.5% and 3.75%. The Fed had lowered rates three times last year.
"Available indicators suggest that economic activity has been expanding at a solid pace," the bank said in a statement. "Job gains have remained low, and the unemployment rate has shown sign of stabilization. Inflation remains somewhat elevated."
Ten of the 12 members of the Federal Open Market Committee voted for the policy, with two dissenting. Fed Governors Stephen Miran and Christopher Waller, both appointed by US President Donald Trump, were in favor of a quarter-point rate reduction.
Federal Reserve Chair Jerome Powell was one of the 10 members who voted in favor of keeping the rates as they are.
To boost the economy, the Federal Reserve will lower interest rates to stimulate borrowing. During times of high inflation, as seen in recent years, the Fed will often raise rates to keep the economy from overheating.
