Live Updated Wed Jan 28 2026 11:16:15 GMT+0000 (Coordinated Universal Time)
It's the first Fed day of 2026, and Chair Jerome Powell is in the hot seat.
Central bank leaders will announce their January interest rate decision at 2 p.m. ET. The meeting follows weeks of political pressure from the Trump administration and a recently announced Department of Justice probe.
Business Insider will be covering projections from economists, the Fed decision, and market moves all day. Check back here for updates.
All eyes on Powell
Powell posted a video message on January 11 announcing that the Fed received a grand jury subpoena. The Trump administration alleges that Powell committed perjury during a June appearance before Congress, where he discussed renovations to the central bank's Washington, DC, buildings.
Business Insider obtained a letter Powell privately sent to senators detailing the Fed's construction plans and budget — the details of which match his testimony. Powell said that the probe, which could result in a criminal indictment, is an escalation of ongoing pressure from the White House.
Powell posted a video message on January 11 announcing that the Fed received a grand jury subpoena. The Trump administration alleges that Powell committed perjury during a June appearance before Congress, where he discussed renovations to the central bank's Washington, DC, buildings.
Business Insider obtained a letter Powell privately sent to senators detailing the Fed's construction plans and budget — the details of which match his testimony. Powell said that the probe, which could result in a criminal indictment, is an escalation of ongoing pressure from the White House.
"The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the president," he said.
Today is the Fed's first decision of 2026
The Federal Open Market Committee has penciled in one rate cut for the new year. Fed leaders opted for three quarter-point cuts last fall after months of steady monetary policy.
The White House and investors are hopeful for a looser approach to interest rates in 2026. But Powell is in a tough spot: Lower rates could speed up a slow job market, but risk a rise in inflation.
The Federal Open Market Committee has penciled in one rate cut for the new year. Fed leaders opted for three quarter-point cuts last fall after months of steady monetary policy.
The White House and investors are hopeful for a looser approach to interest rates in 2026. But Powell is in a tough spot: Lower rates could speed up a slow job market, but risk a rise in inflation.
CME FedWatch is predicting a near-total chance of a rate hold on Wednesday.
