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Fed Poised to Hold Federal Funds Rate at 3.75% at January 28 FOMC as 2026 Politics Intensify
As markets approach the January 28 FOMC meeting, futures pricing indicates around a 97% chance the Federal Reserve will keep the federal funds rate at 3.75%. Inflation near 3.0%, robust fourth-quarter growth and only modest labor market cooling support expectations for a pause, while rising political pressure and a 2026 leadership horizon add uncertainty to the longer-term rate path.