Federal Reserve Leaves Interest Rates Unchanged in First Policy Decision of 2026

Investors now eye the next policy meeting in March.

Federal Reserve Chair Jerome Powell speaks during a press conference following the Federal Open Markets Committee meeting at the Federal Reserve in Washington on Jan. 28, 2026. Kevin Dietsch/Getty Images

The Federal Reserve hit the brakes on its easing cycle and left interest rates unchanged in the central bank’s first policy decision of the year.

Officials voted 10–2 to keep the benchmark federal funds rate—a key policy rate that influences borrowing costs for businesses and consumers—in a range of 3.5 percent to 3.75 percent.