Economic activity in the United States continues to expand at a solid pace, according to the latest statement from the Federal Open Market Committee (FOMC) of the Federal Reserve. The statement, released on January 28, 2026, noted that job gains have remained low and the unemployment rate has shown signs of stabilization. Inflation remains somewhat elevated.
The FOMC reaffirmed its commitment to achieving maximum employment and an inflation rate of 2 percent over the longer run. The committee acknowledged ongoing uncertainty about the economic outlook and emphasized its attention to risks affecting both employment and inflation.
“In support of its goals, the Committee decided to maintain the target range for the federal funds rate at 3‑1/2 to 3‑3/4 percent,” stated the FOMC. “In considering the extent and timing of additional adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks. The Committee is strongly committed to supporting maximum employment and returning inflation to its 2 percent objective.”
The committee indicated it will continue monitoring economic developments: “In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of incoming information for the economic outlook. The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee’s goals. The Committee’s assessments will take into account a wide range of information, including readings on labor market conditions, inflation pressures and inflation expectations, and financial and international developments.”
The decision was supported by Jerome H. Powell (Chair), John C. Williams (Vice Chair), 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 voted against this action; they preferred lowering the target range for federal funds rate by one-quarter percentage point at this meeting.
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