The Fed is keeping rates unchanged at the 3.50% to 3.75% range – Slightly hawkish tone and the US Dollar is strengthening.
Changes to the previous statement include a more robust outlook on employment and the economy – This could take out future cuts but for now participants are awaiting for Powell.
The votes for the pause are at 10-2 – Fed's Waller and Miran dissented.
The pause was 98% priced so not surprising to observe the quiet atmosphere in Markets.
You can get access to the detailed report and Fed Statement right here.
Nothing surprising is appearing in the Statement – Except for a continued rebound in the US Dollar, volatility is low for now.
Powell is currently speaking – Get ready for some high paced shifts in the action.
The Fed Chair is mentioning a persistently elevated inflation (Core PCE–Fed's Favorite measure, is stuck at 2.8% while the target is at 2%) as reason to maintain rates flat.
Tariffs are still a concern and timing for future cuts is uncertain (no preset course, meeting-by-meeting basis). Nothing new here.
Questions are beginning, here's the important part.
For now, Powell is rejecting questions on the US Dollar and anything regarding his subpoena.
He made mentions of the current rate not looking too restrictive when looking at the economy – neutral at best.
Notable quotes from the Statement – Source: Federal Reserve
Pre-Conference Market Pricing
Market Pricing for the March meeting (14:20) – Source: FedWatch Tool
Pre-Conference Asset Board – Courtesy of Finviz
Market Reactions
Dollar is higher but stalls its ascent
US Dollar (DXY) 15M Chart – Source: TradingView – January 28, 2026
US Stocks wicked higher but are staying flat
Dow Jones (CFD) 15m Chart – Source: TradingView
Gold is correcting from its record highs
Gold (CFD) 15m Chart – Source: TradingView
Other metals are also staying flat/correcting slightly
Bitcoin and Cryptos are remaining flat
Keep a close eye on post-speech flows which can be quite sudden.
Safe Trades and Good luck for Powell!
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