FOMC Holds Federal Funds Rate Steady
The Committee decided to maintain the target range for the federal funds rate at 3-1/2 to 3-3/4 percent. 12
The statement says economic activity has been expanding at a solid pace, job gains have remained low, the unemployment rate has shown some signs of stabilization, and inflation remains somewhat elevated. 1
Chair Powell said the policy rate was lowered by 75 basis points over the previous three meetings, and the current stance is seen as appropriate to promote progress toward both the maximum-employment and 2 percent inflation goals. 1
On timing of further adjustments, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks. It says uncertainty about the economic outlook remains elevated. 1
Chair Powell said the temporary federal government shutdown likely weighed on activity last quarter, and that these effects should be reversed as the reopening boosts growth this quarter. 1
The minutes of the January 27–28, 2026 meeting were published on 2026-02-18. 1