On January 28, 2026, the Federal Open Market Committee (FOMC) held another meeting and decided to keep the base interest rate at 3.5%-3.75%. This decision aligned with market expectations, given the previous rate cut in December 2025 by 0.25%. Since September 2024, the Fed has gradually eased its monetary policy, reducing the rate by a total of 1.75%.
This is reported by Business • Media
Market Reaction and Cryptocurrencies
Following the Fed’s announcement, the cryptocurrency market reacted with a brief decline. Bitcoin dropped below the $88,000 mark but then partially recovered, showing a slight bounce from its lows. This reaction is attributed to market participants’ expectations regarding the regulator’s future actions and the overall uncertainty of monetary policy.
It is worth noting that not only the rate decision but also the rhetoric of Fed Chair Jerome Powell significantly influences the dynamics of crypto assets and the market as a whole.
Summary of the Fed Chair’s Remarks and Future Prospects
After the meeting, Jerome Powell held a press conference where he emphasized the Fed’s commitment to simultaneously reducing inflation and supporting maximum employment. According to him, the US economy at the beginning of 2026 is showing resilience, although the pace of job creation remains low.
“The Fed is committed to simultaneously reducing inflation and achieving maximum employment. Powell explained the need to balance these indicators with the regulator’s cautious approach to policy.”
Powell also noted that economic activity is growing steadily, consumer spending is not showing significant fluctuations, and business investments in fixed capital continue to rise. At the same time, the housing sector remains relatively weak. He pointed out that the impact of the government shutdown in the fourth quarter of 2025 is gradually being mitigated.
As of December, the unemployment rate in the US stood at 4.4% and has hardly changed in recent months. The regulator also notes a slowdown in labor force growth, partly due to immigration policy. Inflation continues to decline, but remains somewhat elevated due to rising prices in the goods sector.
The rate is expected to remain unchanged at the next Fed meeting scheduled for March 17-18, 2026. According to the CME exchange, the probability of it being maintained at the current level is 86.4%, while the chances of a further reduction are 13.6%.
Among other important points made by Powell: the instability of the trajectory of US government debt, an optimistic outlook regarding the regulator’s future course, and confirmation of the Fed’s full independence in its decisions. Powell declined to comment on issues related to the US Department of Justice investigation and the selection of a new Fed Chair.