US Federal Reserve holds interest rates steady despite political pressure

Al JazeeraCenterEN 2 min read 100% complete by Andy HirschfeldJanuary 28, 2026 at 08:23 PM

AI Summary

medium article 2 min

In January 2026, the US Federal Reserve decided to hold interest rates steady at 3.5 to 3.75 percent, despite pressure for cuts. The central bank cited "elevated" economic uncertainty as the reason for maintaining the current rate. While economic activity is expanding at a solid pace, job gains have remained low, and the unemployment rate has shown signs of stabilization. The decision comes amid signs of a cooling labor market, with companies like Amazon and UPS announcing job cuts. The Fed indicated it seeks to achieve maximum employment and a 2 percent inflation rate. The market anticipates potential rate cuts later in 2026, possibly starting in June.

Key Entities & Roles

Key Player Opposition Context

ASML 30% Bureau of Labor Statistics 30% Amazon 40% UPS ×250% Donald Trump 60% United States ×270% United States Federal Reserve ×490%

Keywords

interest rates 100% federal reserve 90% economic uncertainty 70% job growth 70% labour market 60% us economy 60% inflation 50% rate cuts 50% monetary policy 40%