The current interest rate is set between 3.5% and 3.75%. In December, during the last FOMC meeting, Powell announced a reduction of 25 basis points in interest rates.
Where To Watch It?
The FOMC meeting commenced on January 27 and will conclude on January 28.
The policy statement is expected to be released by Fed Chair Powell at 14:00 Eastern Time on January 28. Powell’s address will be broadcast live at 12:30 on January 29, according to Indian Standard Time.
Tomorrow at 2:30 p.m. ET: Chair Powell hosts a live #FOMC press conference: pic.twitter.com/xsJxnvMbj3
— Federal Reserve (@federalreserve) January 27, 2026
The press conference following the FOMC meeting will be streamed live on the Federal Reserve’s social media channels, including X at @federalreserve and the Fed’s YouTube channel.
Additionally, the Fed’s speech will also be accessible on CNBC-TV18’s platforms.
What To Expect?
This FOMC meeting is particularly significant, as the US Fed, led by Powell, faces pressure from the Trump Administration to make swift cuts to interest rates. Reports suggest that the Fed is likely to maintain the interest rate at 3.5% to 3.75%, with no new policy projections anticipated.
While Powell’s term as head of the globally influential central banking system will conclude in May 2026, leaving him with two additional FOMC meetings in March and April, the results of this meeting and President Trump’s response are still pending.
Donald Trump has frequently hinted at the possibility of dismissing Powell, who retains his position as governor of the Fed until 2028.
The Federal Open Market Committee (FOMC) is comprised of twelve members: the seven members of the Board of Governors of the Federal Reserve System, the president of the Federal Reserve Bank of New York, and four of the other eleven Reserve Bank presidents.
Why It Matters?
This will be the first FOMC meeting since the Trump administration’s Department of Justice launched an investigation into Powell regarding irregularities related to construction at the Fed headquarters.
As of December, the US inflation rate was recorded at 2.7%, which, although lower than anticipated, remains above the Fed’s target of 2%.
Moreover, in December, the unemployment rate fell to 4.4%, despite sluggish job creation. Consumer spending and strong economic development were the key factors behind this trend. Importantly, the developments at the US Fed have broad implications and affect markets globally.
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