#fedholdsrates

The Federal Reserve concluded its first meeting of 2026 by keeping interest rates unchanged in the 3.50% to 3.75% range. The decision pauses a series of three consecutive rate cuts from late last year as policymakers shift to a wait-and-see approach.

While two members dissented in favor of a cut, the majority cited resilient economic growth and elevated inflation as reasons for caution. This "hawkish pause" has temporarily cooled expectations for immediate liquidity injections, leading to sideways movement in risk assets. The market is now refocusing on labor data and upcoming inflation reports to gauge when the next easing cycle might resume.

Current sentiment reflects a stabilization period as traders recalibrate for a higher-for-longer interest rate environment.