Federal Reserve Leaves Interest Rates Unchanged

On Wednesday, the Federal Reserve held its benchmark interest rate unchanged, marking the central bank’s first pause after three consecutive rate cuts last year, CBS News reported (1-28-26).

At the conclusion of the Federal Open Market Committee meeting, the Fed voted 10–2 to maintain the federal funds rate—the rate banks charge each other for short-term loans—in a target range of 3.5–3.75%.

In its policy statement, the Federal Reserve cited a “solid pace” of economic activity and noted that the unemployment rate remains low. The statement also said inflation “remains somewhat elevated.” Consumer prices rose at a 2.7% annual pace in December 2025, according to the latest Consumer Price Index data.