January 28, 2026
Fed holds rates steady as DOJ investigates Powell and Trump searches for successor
First 2026 decision keeps rates at 3.5-3.75% despite Trump pressure
💰Economy🏛️Government
The Federal Reserve announced on Jan. 28, 2026 that it would hold the federal funds rate at 3.5-3.75%, its first decision of 2026. Markets had priced in a 97% probability of no change.
The Fed cut rates three times in late 2025. The Dec. meeting saw three dissents: Governor Stephen Miran pushed for a deeper 50 basis point cut, while Chicago Fed President Austan Goolsbee and Kansas City Fed President Jeff Schmid preferred to hold steady.
The Justice Department served Fed Chair 
Jerome Powell with a subpoena seeking information on the Fed's renovation of its Washington headquarters. Powell called the probe a pretext for Trump's desire to pressure the Fed on rate decisions.
The Supreme Court heard oral arguments earlier in Jan. on whether President Trump can remove Fed Governor Lisa Cook from her position. The case could determine how much control presidents have over independent agencies.
Governor Stephen Miran's term expires on Jan. 31, 2026, adding to leadership uncertainty. Miran was the only member who voted for a larger rate cut in Dec..
President Trump is expected to name his choice for Powell's successor within days. Leading candidates include Kevin Hassett, Christopher Waller, Kevin Warsh, and BlackRock CIO Rick Rieder.
The meeting occurs amid a potential government shutdown, with Congress facing deadlines on spending bills. Fed operations would continue regardless of a shutdown.
💰Economy🏛️Government
People, bills, and sources
Jerome Powell
Federal Reserve Chair
Stephen Miran
FOMC Governor
Lisa Cook
Fed Governor
Donald Trump
President
Kevin Hassett
NEC Director
Rick Rieder
BlackRock CIO
What you can do
1
civic action
Monitor Fed decisions through the official FOMC calendar and meeting statements
The Federal Reserve held interest rates steady at 3.5-3.75% in January 2026 despite President Trump's pressure for aggressive cuts. Consumer prices rose 2.4% in February, gradually cooling toward the Fed's 2% target, but the Iran war threatens to reverse progress with oil price surges. Fed Chair Jerome Powell is maintaining independence from political pressure, with the next FOMC meeting scheduled for March 17-18, 2026. The Fed's independence is essential for stable monetary policy.
Go to federalreserve.gov/monetarypolicy/fomccalendars.htm to track upcoming Federal Open Market Committee meetings. Read the official statements and press releases after each meeting. Compare the Fed's economic data-driven decisions with political statements from the White House. Key context: Fed held rates steady at 3.5-3.75% in January 2026 despite Trump pressure. Inflation at 2.4% in February, Iran war creating oil price uncertainty. Next FOMC meeting March 17-18, 2026.
2
civic action
Contact your senators about Fed independence via Senate Banking Committee
The DOJ investigation appears designed to undermine central bank independence.