Saturday’s Horoscope: Taurus – Exercise on January 24th
- The Federal Reserve's Federal Open Market Committee (FOMC) voted unanimously on January 24, 2026, to maintain the federal funds rate in a target range of 5.25% to 5.5%,...
- The Consumer Price Index (CPI) rose 3.1% over the past 12 months,according to the Bureau of Labour Statistics' December 2025 report.this is down from a peak of 9.1%...
- "The Committee does not anticipate that it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2...
Federal Reserve Holds Interest Rates Steady, Signals Potential cuts in 2024
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The Federal Reserve’s Federal Open Market Committee (FOMC) voted unanimously on January 24, 2026, to maintain the federal funds rate in a target range of 5.25% to 5.5%, a level not seen since 2001. This decision follows a series of eleven rate hikes beginning in March 2022, aimed at curbing inflation. Though, the committee’s statement indicated a shift in outlook, suggesting potential rate cuts later this year.
Inflation and Economic Data
The Consumer Price Index (CPI) rose 3.1% over the past 12 months,according to the Bureau of Labour Statistics’ December 2025 report.this is down from a peak of 9.1% in june 2022. The unemployment rate remained at 3.7% in December 2025, as reported by the Bureau of Labor Statistics. Gross Domestic Product (GDP) grew at an annualized rate of 2.5% in the fourth quarter of 2025,according to the Bureau of Economic Analysis.
Committee Statement and Future Outlook
“The Committee does not anticipate that it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2 percent,” the FOMC stated in its post-meeting release.
During a press conference following the meeting, Federal Reserve Chair Jerome Powell stated that while the committee believes the peak of the rate-hiking cycle has passed, it will remain data-dependent. He noted that the committee discussed the possibility of rate cuts at upcoming meetings, but no specific timeline was established. powell also acknowledged the risks of both undershooting and overshooting the 2% inflation target.
Market Reaction
Following the announcement, the Dow Jones Industrial Average rose 150 points, closing at 38,500. The S&P 500 increased by 0.8%, finishing at 4,900.Yields on 10-year Treasury notes fell to 4.05%. Analysts at Goldman Sachs predict the Federal Reserve will begin cutting interest rates by 25 basis points in June 2024, citing the cooling inflation data and a resilient labor market. Bloomberg Economics forecasts a total of 75 basis points of cuts by the end of 2024.
Recent Rate Hikes (2022-2023)
- March 2022: 0.25%
- May 2022: 0.50%
- June 2022: 0.75%
- July 2022: 0.75%
- September 2022: 0.75%
- November 2022: 0.75%
- December 2022: 0.50%
- Febuary 2023: 0.25%
- March 2023: 0.25%
- May 2023: 0.25%
- July 2023: 0.25%
Sources: Federal Reserve, Bureau of Labor Statistics, Bureau of Economic Analysis, Goldman Sachs, Bloomberg Economics. Data current as of January 24, 2026.