Fed Expected to Hold Rates Steady at January 28 Meeting, Pausing After Three Cuts

The Federal Reserve is widely anticipated to leave its benchmark interest rate unchanged at its policy meeting on January 28, 2026, marking its first pause after three consecutive cuts in late 2025. The decision reflects caution as inflation, while eased, remains above the Fed's 2% target. The central bank reduced rates by 0.75 percentage points in September, October, and December 2025. Markets currently price in roughly a 60% chance of a quarter-point cut by the June 2026 meeting. Top-yielding savings accounts, currently offering APYs around 4-5%, are unlikely to shift significantly near-term due to the pause, while competitive certificate of deposit (CD) rates, some up to 4.50% APY, may be more sensitive to future policy expectations.