FEBRUARY 2, 2026 – – FED MEETS, RATES REMAIN UNCHANGED
The Federal Reserve met last week and held rates steady. They remain in the range of 3.5 percent to 3.75 percent. The FOMC stated there is no urgency to resume rate cuts considering stronger economic growth and labor market stability. The general sentiment is, unless there are signals of the labor market weakening or inflation nearing the Fed’s 2 percent target, there will be no change in policy.
Powell stated there remains tension between unemployment and inflation, but less than there has been. More worrying is a slowdown in job growth, but with little effect on the unemployment rate, which is unusual. Tariffs seem to have taken less of a toll than initially expected, but they could still be passed onto the consumers and drive-up inflation.
It is unlikely rates will move before spring. Jerome Powell’s role as the Fed chair will end in May, and depending on the new appointment, monetary policy could change following the change in leadership.