US Fed Meeting Live: FOMC Widely Expected To Hold Rates After Three Straight Cuts

The greenback rose 0.5% as US Treasury Secretary Scott Bessent said the US hasn’t intervened to strengthen the yen, and touted the long-standing “strong-dollar policy.” 

A decision to hold rates steady this month is likely to garner broad support from policymakers following a series of contentious cuts. While the majority of officials agreed in those instances to backstop a weakening labor market, another group of policymakers pushed for the focus to remain on elevated inflation.

Economic data since the Fed's early December meeting show little change in labour market or inflation trends, providing limited reason to guide on future rate cuts. Even as job growth remained weak, the unemployment rate fell to 4.4% in December. This was mainly driven by strong economic growth and consumer spending. The Personal Consumption Expenditures Price Index, the Fed's preferred measure for its 2% inflation target, rose slightly to 2.8% in November.

Source: Reuters

The FOMC meeting is scheduled for Jan. 27 and 28. The policy statement will be announced at 2 p.m. ET on Jan. 28 (12:30 a.m. IST on Jan. 29) at a press conference by Powell. The press conference, which follows the meeting, will be streamed live on the Federal Reserve's social media platforms, such as X and YouTube. NDTV Profit will also stream the FOMC press conference on its YouTube channel and social media platforms.

The Fed's two-day meeting concludes on Wednesday, with policymakers expected to keep the benchmark interest rate at 3.5-3.75%. No new economic or policy projections are scheduled, but investors generally expect the Fed to pause further rate cuts until June, likely under Powell's successor.

According to a Reuters report, market-based inflation expectations and longer-term US bond yields show no widespread concern about the central bank's future.

Powell will hold his usual post-meeting press conference on Wednesday. However, it is anticipated that the focus will be less on the policy than on events between meetings. These include a Justice Department subpoena and threatened criminal probe, which prompted the central bank chief to issue a response saying it is part of Trump's campaign to pressure him for rate cuts.

The US equity benchmark S&P 500 index hit an all-time high of 7,000 during early trading session on Wednesday, hours before the US Fed announces its monetary policy decision.

Wall Street Snapshot:

• S&P 500 rises 0.3%, Nasdaq 100 rises 0.7% 
• Dow Jones Industrial Average rises 0.1% 
• Bloomberg Dollar Spot Index rises 0.3% 
• Bitcoin rises 1% to $89,867.92 
• WTI Crude Rises 1.1% To $63.07/Barrel 
• Spot Gold rises 1.6% to $5,260.94  
• 10-Year Treasury Yield unchanged at 4.24%

The United States Federal Reserve is expected to keep interest rates unchanged following its two-day key meeting on Wednesday. The ongoing Fed meeting comes amid reports that the central bank is facing unusual political pressure from the Trump administration for rate cuts. Only three US Fed policy meetings remain before Chairman Jerome Powell's eight-year stint as the world's top central banker ends.