Today's Business Headlines 01/27/26
The Fed on Wednesday kept interest rates in the current range, a move that was widely expected in spite of intensifying pressure from President Trump and the criminal probe into Fed Chair Jerome Powell .
, the central bank maintained rates in the 3.5% to 3.75% range at its first meeting of the year, in a 10-2 vote. Policymakers opted to take a wait-and-see approach after months of weighing inflation risks against unemployment — likely assuaged by recent economic reports revealing strong GDP figures and a fairly resilient labor market.Interest rates are currently in the “neutral” range, meaning they are not significantly restraining or promoting growth, but most Fed officials have projected further rate cuts this year. “I’d characterize today’s meeting as a very boring meeting during very interesting times,” Christian Hoffman, head of fixed income at Thornburg Investment Management, said in a note Wednesday. Here's how much more money Americans will see in their tax returns – thanks to Trump's signature bill“Any day now, I expect we’ll learn who Powell’s successor will be, and I wouldn’t be surprised if an announcement is timed to the current meeting … Trump, paradoxically, wants a new chair who is sympathetic to his views and also credible to investors.”As part of the Fed’s annual rotation in January, it has added four new members to its 12-person voting committee. Three of those new members have expressed opposition to some of last year’s interest rate cuts, advocating for a more cautious approach. Meanwhile, Trump’s attacks on Powell — whose term as chairman expires in May — have heated up as the president has continued to call for a more aggressive rate-cutting path.“The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the president,” Powell said in a stunning video statement. “This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions — or whether instead monetary policy will be directed by political pressure or intimidation.” Trump first nominated Powell to lead the Fed at the start of his first presidential term, but he has since threatened to fire the chairman several times — calling Powell “stupid” and claiming he has “mental problems.” Wednesday’s interest-rate decision also follows Supreme Court arguments last week in a lawsuit over whether Trump can fire Fed Governor Lisa Cook over alleged mortgage fraud.Here's how much more money Americans will see in their tax returns – thanks to Trump's signature billWhitney Art Party 2026 red carpet: Martha Stewart, Ego Nwodim and more Savannah Guthrie immediately regrets grilling Serena Williams in awkward ‘Today’ interview: Are you ‘mad at me?’
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