US Fed likely to pause rate cuts, faces political heat
The US Federal Reserve is expected to keep interest rates steady at 3.5-3.75% in its January 28, 2026 meeting, after three cuts last year.
The decision comes as the economy sends mixed signals—jobs are slowing and inflation is still above target.
Meanwhile, President Trump keeps pushing for more rate cuts and will soon pick a new Fed chair, since Jerome Powell's term ends in May.
Why does it matter?
Things are tense behind the scenes: the Trump administration is trying to remove a Fed governor over fraud claims and investigating Powell for renovation spending.
Powell has warned that threats of criminal charges put the Fed's independence at risk.
With major meetings scheduled this year and a new leader coming in, how the Fed handles all this could shape money policy—and your wallet—for years to come.