The US Federal Reserve kept its key interest rate at 3.5-3.75%

On January 28, the US Federal Reserve System (Fed) kept the federal funds rate at 3.5-3.75%. This was announced in a statement by the Federal Open Market Committee (FOMC).

“Available indicators suggest that economic activity is growing at a steady pace. Employment growth remains low, and the unemployment rate shows signs of stabilizing. Inflation remains somewhat elevated,” the FOMC said.

In considering the size and timing of further adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the outlook, and the balance of risks. The FOMC is committed to supporting maximum employment and a return of inflation to its 2% objective, the statement said.

Commenting on the decision to leave rates unchanged, the BBC notes that US Federal Reserve Chairman Jerome Powell said the economy had surprised with its strength and that the outlook for economic activity had improved since the last meeting. The regulator will continue to monitor the impact on the economy of three interest rate cuts in 2025.

As reported by GMK Center, the International Monetary Fund has improved its global economic growth forecast for 2026 to 3.3%. Most of the improvement is attributable to the United States and China. In particular, the IMF expects US GDP growth of 2.4% this year.