economy

January 28, 2026

Federal Reserve meets Wednesday for its first interest rate decision of 2026. Here's what to expect.

Updated on: January 27, 2026 / 11:57 AM EST / CBS News

Federal Reserve meets Wednesday for its first interest rate decision of 2026. Here's what to expect.

TL;DR

  • The Federal Reserve is expected to keep interest rates unchanged at its next policy meeting.
  • President Trump has urged the Fed to lower interest rates.
  • Fed Chair Jerome Powell faces investigations and a Supreme Court case related to his tenure.
  • The Fed's decision will consider a weakening labor market and inflation above the 2% target.
  • Powell is expected to emphasize the Fed's independence from political pressure.
  • Trump is expected to nominate a successor to Powell, whose term expires in May.
  • Potential candidates for Fed chair include Kevin Hassett, Christopher Waller, Kevin Warsh, and Rick Rieder.

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