Federal Reserve keeps rate unchanged in 1st meeting of 2026
The Federal Reserve’s first interest rate decision has been made for 2026, after three cuts last year. The short-term interest rate is unchanged at about 3.6% for the time being.
Here’s a look at what’s at play for the central bank in 2026:
Fed interest rate decisions in 2026
Big picture view:
The board holds eight meetings each year to decide on interest rate changes, which could result in cuts, hikes or pauses. The central bank is facing huge pressure from the White House to continue aggressively lowering the rate.
The other side:
The rate-setting committee remains split between those opposed to further cuts until inflation drops below the 2% target, and those who want to lower rates to further support hiring.
Timeline:
Here are the meeting dates for 2026:
- January 27-28 (rate unchanged at about 3.6%)
- March 17-18
- April 28-29
- June 16-17
- July 28-29
- September 15-16
- October 27-28
- December 8-9
Most economists forecast the Fed will cut twice this year, most likely at the June meeting or later.
Why you should care:
A lowered interest rate can signal an improving economy, and help bring down borrowing costs for mortgages, auto loans and credit cards over time.
Meanwhile:
Larger-than-usual tax refunds over the next few months should help fuel more consumer spending, economists expect. And faster growth could eventually boost hiring, which has been noticeably weak even as the economy is expanding.
Jerome Powell replacement
FILE - Federal Reserve Chair Jerome Powell speaks during a press conference following the Federal Open Markets Committee meeting at the Federal Reserve on December 10, 2025 in Washington, DC. (Photo by Chip Somodevilla/Getty Images)
Big picture view:
Looking ahead in 2026, a new chair will come in place for the board as Jerome Powell’s term ends in May. He was appointed by Trump in 2017.
What's next:
President Trump has yet to name a potential replacement, but officials have signaled the announcement could come soon.
Fed building renovation
Meanwhile:
Earlier this month, the Department of Justice served the central bank with subpoenas and threatened it with a criminal indictment over Powell’s testimony last summer about the Fed’s $2.5 billion building renovations.
With the subpoenas, Powell became the latest perceived adversary of the president to face a criminal investigation by the Trump administration’s Justice Department.
READ MORE: Federal Reserve Chair Powell under criminal investigation over HQ renovation, report
What they're saying:
Powell in an unusually blunt video statement said the subpoenas were a pretext to punish the Fed for not cutting rates more quickly.
Supreme Court hearing Lisa Cook case
Supreme Court likely to let Lisa Cook keep job
The Supreme Court heard arguments today on whether or not President Trump has the authority to fire someone from the Federal Reserve, specifically in regards to Lisa Cook. LiveNOW's Mike Pache discussed what happened in the nation's high court today with Reuters reporter Ann Saphir.
Big picture view:
Also ahead for 2026 is a decision from the Supreme Court on Trump's attempt from last year to fire Fed governor Lisa Cook over allegations of mortgage fraud, which she denies.
No president has fired a governor in the Fed’s 112-year history.
The justices at an oral argument appeared to be leaning toward allowing her to stay in her job until the case is resolved.
The Source: Information in this article comes from the Federal Reserve’s Jan. 27-28, 2026, meeting, and Chair Jerome Powell’s remarks in the aftermath. Background information was taken from previous FOX Television Station reportings and The Associated Press. This story was reported from Detroit.