The Federal Reserve is expected to keep its key interest rate at the target range of 3.5% to 3.75%, but traders are looking for hints on next steps for policy.

The Federal Reserve concluded its first meeting of 2026 by holding the federal funds rate (FFR) steady in the 3.50%-3.75% range.

By Howard Schneider WASHINGTON, Jan 29 (Reuters) - The wide gulf between the Trump administration and the U.S. Federal Reserve over where interest rates ought to be masks the fact that the two sides have begun to share a consensus about the near-term economic outlook.

Forecasters don't believe the next Fed chair installed by President Donald Trump will drive down overnight rates toward the low levels demanded by the president.

Traders in the federal-funds-futures market continued to price in two potential interest-rate cuts by the Federal Reserve this year as they assessed the Fed’s statement Wednesday on its decision to hold its policy rate steady at the current target range of 3.

By Howard Schneider and Ann Saphir WASHINGTON, Jan 28 (Reuters) - The Federal Reserve held interest rates steady on Wednesday amid what U.S. central bank chief Jerome Powell called a clear improvement in the outlook for economic growth and diminished risks to both inflation and employment,

The Federal Reserve is nearing an interest rate decision at its January meeting. Jerome Powell is under growing pressure amid a DOJ investigation.

The rate-setting committee remains split between those opposed to further cuts until inflation comes down, and those who want to lower rates to further support hiring.