The Federal Open Market Committee kept the federal funds rate at 3.50%-3.75% in January, according to Federal Reserve meeting minutes.
Minutes revealed continued concerns about inflation remaining beyond the 2% objective. While tariff-driven core goods inflation is likely to fall later this year, most members cautioned that progress toward the target could be gradual and uneven, with the possibility of chronically high inflation.
On the labor market, policymakers said that conditions appear to be stabilizing after a gradual cooling. Layoffs are low, but hiring is slow, with firms cautious. The downside risks to employment have decreased since the previous meeting.
Members anticipate strong growth in 2026, but expressed considerable uncertainty about the forecast. Most members believe that employment hazards have subsided, whereas inflation risks remain more pronounced. Some warned that reducing rates too fast could jeopardize commitment to the 2% target.


RBA's Hauser Flags Uncertainty on Rate Settings Amid Iran War Economic Risks
Bank of Japan Governor Signals Accommodative Stance Amid Negative Real Rates
Bank of Japan Faces Rate Uncertainty Amid Middle East Oil Shock
Bank of Japan Officials Signal Continued Interest Rate Hikes Amid Inflation Concerns
Bank of Korea Nominee Shin Hyun-song Signals Possible Rate Hike Amid Middle East Inflation Fears
Bank of America Maintains Forecast for Two Fed Rate Cuts in 2026 Despite Inflation Risks
Goldman Sachs Raises ECB Rate Hike Forecast Amid Persistent Energy-Driven Inflation
Federal Reserve Probes Big Banks Over Private Credit Exposure Amid Growing Systemic Risk Concerns
Citigroup Delays Fed Rate Cut Forecast Amid Strong Jobs Data and Inflation Concerns
Bank of Japan Signals Rate Flexibility Amid Yen Volatility
RBI Clamps Down on Rupee NDF Activity, Banks Face Steeper Losses 



