Full text of the Federal Reserve's decision: Rate cuts paused; Milan and Waller voted against.

On January 29, in its first interest rate decision of 2026, the Federal Reserve kept its benchmark interest rate unchanged at 3.50%-3.75%, pausing its three-pronged rate cut since September of last year , in line with market expectations. The policy statement revealed continued disagreement among participants, with Governors Milan and Waller opposing the decision and supporting a 25-basis-point rate cut.

Full text of the interest rate decision

Available indicators show that economic activity continues to expand at a solid pace. Job growth remains low, and the unemployment rate has shown some signs of stabilization. Inflation remains slightly high.

The Committee is committed to achieving full employment in the long run and maintaining inflation at its 2 percent target. Uncertainty about the economic outlook remains at a high level. The Committee closely monitors the risks to its dual mandate.

To support these objectives, the Committee decided to maintain the target range for the federal funds rate at 3.5–3.75 percent. In considering the magnitude and timing of any further adjustments to the target range for the federal funds rate, the Committee will carefully assess the latest available data, the evolving outlook, and the balance of risks. The Committee remains firmly committed to supporting maximum employment and pushing inflation back to its 2 percent objective.

In assessing the appropriateness of the stance of monetary policy, the Committee will continue to monitor the implications of latest information for the economic outlook. If risks arise that could prevent the Committee from achieving its objectives, the Committee is prepared to adjust the stance of monetary policy as appropriate. The Committee's assessment will take into account a wide range of information, including labor market conditions, inflationary pressures and inflation expectations, as well as developments in the financial and international situation.

Those who voted in favor of this monetary policy action were: Chairman Jerome H. Powell, Vice Chairs John C. Williams, Michael S. Barr, Michelle W. Bowman, Lisa D. Cook, Beth M. Hammack, Philip N. Jefferson, Neel Kashkari, Lorie K. Logan, and Anna Paulson.

Stephen I. Miran and Christopher J. Waller opposed the decision, preferring a 25-basis-point reduction in the target range for the federal funds rate at this meeting.

Risk Warning and Disclaimer: The market is risky, and investment requires caution. This article does not constitute personal investment advice, nor does it take into account the specific investment objectives, financial situation, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article are suitable for their specific circumstances. Any investment decisions made based on this information are at your own risk.