Here is a summary of the key points from the speech by the Chairman of the U.S. Federal Reserve, Jerome Powell, today (January 28, 2026), following the decision to maintain interest rates:
1. Interest Rate Decision and Monetary Policy
Interest Rate Decision: The Federal Reserve kept interest rates unchanged in the range of 3.5% to 3.75%, marking the first meeting of 2026.
The policy is "appropriate": Powell stated that the current monetary policy is "appropriate" for the current economic situation, and future interest rate decisions will be made at each meeting based on incoming data.
2. State of the economy and growth
Solid foundations: Powell confirmed that the U.S. economy entered 2026 on "solid foundations" with notable resilience in consumer spending.
Raising forecasts: The Fed raised its expectations for GDP growth in 2026 to 2.3% (compared to 1.8% in previous forecasts).
3. Inflation and the labor market
Inflation: He indicated that inflation has decreased significantly but is still "somewhat high" and above the target (2%).
Labor market: Powell acknowledged a slowdown in the labor market, but sees signs of "stability", noting that part of this slowdown is due to a decline in the workforce and the effects of the recent government shutdown.
4. Independence of the central bank (the most prominent point)
Defending independence: Powell strongly defended the independence of the Federal Reserve, describing it as "a cornerstone of modern democracies."
Response to pressures: In an indirect response to political tensions (and recent investigations), he affirmed that the Fed is "non-political" and will not be subject to intimidation or political pressures when making interest rate decisions.
5. Future outlook
Not rushing: Powell hinted that the Fed is in a position to "wait and watch", with no predetermined path for interest rate cuts, and the data will determine the timing and extent of any upcoming adjustments.
Summary for markets: The word was "balanced"; he reassured the markets of the strength of the economy, but did not make explicit promises of a near-term interest rate cut, emphasizing that protecting the independence of the bank is the current priority.
