Business Insider tells the global tech, finance, stock market, media, economy, lifestyle, real estate, AI and innovative stories you want to know.
The first Federal Reserve meeting of 2026 is in the books, and Chair Jerome Powell stayed tight-lipped on the central bank's biggest controversies.From the job market to political tensions, here are Business Insider's biggest takeaways from the January call to hold rates steady.
The Fed appeared more optimistic about the economic picture on Wednesday. While recent Fed press releases after interest rate decisions included a warning of "downside risks to the labor market," that comment was removed in January's release.Powell said that the central bank's dual mandate — stable prices and maximum employment — is becoming more balanced than it was for much of last year. The unemployment rate is relatively low with minimal changes, even as labor market demand and hiring remain stagnant. He added that consumer spending has remained "resilient" and inflation rates are in a solid position, aside from tariff impact.As for AI, Powell speculated that new technology is likely to have a positive effect on both companies and their employees."Every technological wave will eliminate some jobs and create other jobs," he said. "It's always been the case. If you look back, wave after wave after wave, there will be some disruption. But ultimately, technology increases productivity, which is the basis for rising wages. It may not all happen immediately, but over time, it's what enables incomes to rise."The central bank has long been known for making uniform policy decisions, but the current FOMC has seen split votes in every meeting since July.There were two dissenters in the January 28 meeting — Governors Stephen Miran and Christopher Waller hoped for a quarter-point rate cut. This is down from three dissents in the December meeting, which was the most since September 2019.Powell said there was "broad support" on the FOMC for holding today, including among non-voters, although "there are different views on the committee" over which side of the dual mandate takes priority when data is ambiguous.The chair did not say whether the Fed plans to cut rates next month — or whether that move would be supported within the FOMC. "Policy is not a preset course," he said. "We make decisions on a meeting-by-meeting basis."The Fed has been in the news more than usual lately, as the Trump administration continues to put pressure on central bank leadership. The president has been vocal about his desire for bigger, faster rate cuts. And, with Powell's term as chair ending in May, Trump will be able to choose his successor.Powell did not comment on any of the Fed chair frontrunners or provide further detail on the ongoing Department of Justice probe over construction at the bank's Washington, DC, buildings. He also dodged a question about Governor Lisa Cook's mortgage fraud case, which was heard by the Supreme Court last week. However, Powell emphasized the importance of Fed independence. It's "hard to restore the credibility of the institution" if the neutrality from political independence is lost, he said.The Fed chair did have a piece of advice for his successor."Stay out of elected politics," he said. "Don't get pulled into elected politics. Don't do it."
Interest Rates Jerome Powell Trump
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Fed expected to keep rates unchanged as Chair Powell pivots back to economicsAfter two weeks of intense political and legal scrutiny, the Federal Reserve will seek to make this week’s meeting about interest rates as straightforward and uneventful as possible, though President Donald Trump probably still won’t like the result.
Read more »
Fed expected to keep rates unchanged as Chair Powell pivots back to economicsAfter two weeks of intense political and legal scrutiny, the Federal Reserve will seek to make this week’s meeting about interest rates as straightforward and uneventful as possible, though President Donald Trump probably still won’t like the result.
Read more »
What to expect at Fed meeting: Interest rates, Powell under pressureBusiness Insider tells the global tech, finance, stock market, media, economy, lifestyle, real estate, AI and innovative stories you want to know.
Read more »
Fed expected to keep rates unchanged as Chair Powell pivots back to economicsAfter two weeks of intense political and legal scrutiny, the Federal Reserve will seek to make this week’s meeting about interest rates as straightforward and uneventful as possible, though President Donald Trump probably still won’t like the result.
Read more »
FOMC Meeting Preview: Will Trump Undermine Powell by Nominating a New Fed Chair?Market Analysis by covering: Euro US Dollar, US Dollar Index Futures. Read 's Market Analysis on Investing.com
Read more »
Fed Decision Day: Pause Expected With Powell’s Tone in FocusMarket Analysis by covering: S&P 500, US Dollar Index Futures, Gold Futures, United States 10-Year. Read 's Market Analysis on Investing.com
Read more »