Wall Street Breakfast Fed hits the pause button
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Jan 28, 2026 Feds hold rates with a 10–2 vote and debate whether to cut soon. Powell avoids questions about DOJ probes while stressing central bank independence. Markets react with mixed stocks, rising gold, and slightly higher yields. Big corporate moves include Seagate gains and Amazon cutting 16,000 corporate roles.
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Powell Reaffirms Fed Independence
- Jerome Powell repeatedly refused to comment on the DOJ investigation and his future, reinforcing a tight, apolitical stance.
- Powell emphasized central bank independence and said the Fed remains committed to it amid scrutiny.
Fed Holds Rates, Markets Delay Cuts
- The Fed kept the federal funds rate at 3.5–3.75% and signaled meeting-by-meeting decisions going forward.
- Markets saw rate cuts unlikely until June and futures price a floor near 3–3.25% before hikes in 2027.
Labor Confidence And Divergent Votes
- The policy statement removed language about rising downside risks to employment, showing more confidence in labor markets.
- The FOMC vote was 10-2 with two dissents calling for quarter-point cuts, highlighting internal division.