$BTC $ETH $BNB The Federal Reserve Presses the "Pause Button," Gold Strongly Breaks Through $5,596

After three consecutive interest rate cuts, the Federal Reserve announced on January 28 that it would maintain the federal funds rate in the range of 3.5%–3.75%. This marks the first pause since the rate-cutting cycle began last September.

Following the announcement, the market reacted quickly: the dollar index rose more than 1% at one point, while gold and silver prices moved against the trend, with spot gold breaking through $5,596 per ounce, and silver also reaching a new high simultaneously.

Behind the Pause

According to the statement released after the meeting, the Federal Reserve believes that current employment growth remains sluggish, inflation levels are still above target, and the economic outlook carries "high uncertainty"; thus, it decided to temporarily hold off on further actions. Data shows that in December 2025, the U.S. Consumer Price Index (CPI) rose 2.7% year-on-year, with core CPI at 2.6%, indicating that inflation pressures have not completely subsided.

Federal Reserve Chair Jerome Powell stated at the press conference that the impact of previous tariffs on prices has largely been transmitted, and if no new tariff measures are implemented, their impact will gradually diminish. However, he also emphasized that no decisions have been made regarding whether or when to ease policy again in the future.

It is worth noting that there were dissenting votes in this decision—Board Member Christopher Waller and Michelle Bowman advocated for a further 25 basis point rate cut. Some market perspectives suggest that their voting inclination might be related to considerations for the nomination of the next Federal Reserve Chair. Following the announcement, expectations for Waller to be nominated as the new Chair have increased.

Will there be further rate cuts?

Although this time the choice was to wait and see, most institutions still expect the Federal Reserve to have room for rate cuts within this year, just that the timing may be delayed. Analysts point out that if economic and employment data remain robust, the meetings in March and April may also continue to pause, with the rate cut window potentially opening after May, coinciding with the new Chair's appointment. Currently, the market generally anticipates that there may be two rate cuts in 2026. #金价再冲高位 #币安将上线特斯拉股票永续合约