Market focus has shifted to the Federal Reserve’s January 28, 2026 meeting after last week’s rate cut, with traders strongly signalling expectations of no further change.
Futures markets indicate policymakers are likely to hold the target federal funds rate steady rather than pursue another adjustment.
Pricing reflects growing confidence that the next Federal Open Market Committee meeting will prioritise patience over immediate policy action.
Federal Reserve Chair Jerome Powell said policymakers broadly agree that inflation remains above desired levels while labour market conditions have softened.
Powell noted that consensus within the FOMC is not the issue, but rather how officials balance inflation risks against economic cooling.
He explained that differing views persist on whether current policy settings are sufficient or whether further easing may be needed later.
“What you see is some people feel we should stop here and that we’re at the right place and just wait, some people feel like we should cut once or more this year and next year,” Jerome Powell said.