The Fed report
highlights from The FOMC Policy Update
JANUARY 29, 2026
Yesterday, the Federal Open Market Committee (FOMC) released its statement and held a press conference following the conclusion of its January meeting.
FOMC Policy Updates: Key Highlights
- Following three consecutive interest rate cuts in September, October, and December, the FOMC maintained the target range for the federal funds rate at 3.50-3.75% at its first meeting of 2026.
- For the fifth consecutive meeting, the FOMC decision was not unanimous, as Fed Governors Stephen Miran and Christopher Waller voted to lower the target range by 25 basis points. During his remarks, however, Chair Powell reiterated that there was “broad support” among the Committee – including non-voting members – to maintain the target range at this meeting.
- The Fed’s statement struck a slightly more positive tone relative to those in recent months, noting that the unemployment rate has “shown some signs of stabilization” and economic activity has been “expanding at a solid pace.”
notable commentary
- Consistent with the statement, Chair Powell struck a relatively dovish tone during the press conference, beginning his remarks by highlighting that the U.S. economy is “coming into 2026 on a firm footing.”
- Chair Powell noted that the Fed’s policy rate is “within a range of plausible estimates of neutral” following 175 basis points of rate cuts since September 2024 and that the Fed believes it is “well-positioned here to watch how the economy performs and look at the data” when considering future interest rate decisions.
- Chair Powell characterized the tension in the Fed’s dual mandate as having eased slightly, as the upside risks to inflation and the downside risks to employment have both diminished somewhat.
- Despite receiving several questions on the matters, Chair Powell declined to comment on political developments, including the grand jury subpoenas that the Department of Justice served the Federal Reserve earlier this month, as well as whether he plans to remain on the Board of Governors following the end of his term as Chair in May 2026.
Important Disclosures
This report includes the thoughts and opinions of AGNC Investment Corp. (“AGNC”) and is being shared for informational purposes only and should not be construed as investment advice. Neither the Federal Reserve nor any other third party has contributed to or been involved in AGNC’s preparation of these materials. AGNC does not endorse or adopt the views of the Federal Reserve or any third party.
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