economy
January 27, 2026
The Fed releases its latest interest rate decision Wednesday. Here's what to expect
This week's meeting offers little suspense and probably not much action, even as massive changes loom over the Fed's longer-term direction.
TL;DR
- The Federal Reserve is unlikely to change its benchmark interest rate at the upcoming meeting.
- Market expectations suggest one or two rate cuts later in the year, possibly in June and December.
- President Trump may announce a nominee for Fed Chair, potentially during the meeting.
- Chair Jerome Powell has been subpoenaed by the Justice Department in relation to a Fed renovation project, which Powell views as a political tactic to influence rate cuts.
- There is uncertainty regarding Fed Governor Lisa Cook's position and the expiring term of Trump appointee Stephen Miran.
- The Fed is likely to maintain its stance despite political pressure, emphasizing data over presidential preferences.
- Markets will analyze the post-meeting statement for indications of a hawkish (no further cuts) or dovish (future cuts likely) bias.
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