In its first monetary policy decision of 2026, the Federal Reserve elected to hold the federal funds rate steady at 3.50%–3.75%, pausing further cuts after three reductions late last year. The decision, made at the January 27–28 Federal Open Market Committee meeting, reflects a cautious stance amid mixed economic signals and persistent inflation above target. The FOMC statement shows that while economic activity “has been expanding at a solid moderate pace,” job gains have slowed and the unemployment rate has only “shown…