Wednesday, Jan. 28, 2026…4:05 PM ET
[4:00 PM ET closing prices for stocks; 3:45ish for commodities and bonds.]
Markets were essentially flat heading into the Fed rate decision at 2:00 PM ET, and, more importantly, Chair Jerome Powell’s comments after at 2:30.
As expected, the Fed then held the line on interest rates and offered little clarity on when cuts might resume after contentious reductions at officials’ three previous meetings. The decision to hold the benchmark federal-funds rate steady in a range between 3.5% and 3.75% was approved in a 10-2 vote, Fed Governors Christopher Waller and Stephen Miran voted against the decision in favor of lowering rates by a quarter-point.
Compared with its previous statement the Fed removed language from the statement that had noted “downside risks to employment rose in recent months.”
The Fed upgraded views of the economy to say available indicators suggest economic activity “has been expanding at a solid pace.” The statement then read: “Job gains have remained low, and the unemployment rate has shown some signs of stabilization. Inflation remains somewhat elevated.”
And: “In considering the extent and timing of additional adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks. The Committee is strongly committed to supporting maximum employment and returning inflation to its 2 percent objective.”
Chair Powell’s presser comments elicited little response in the markets.
The next Fed meeting is March 17-18, and we will have received a lot more relevant economic data by then as we’ve been playing catchup following the October government shutdown. Any new shutdown I don’t believe impacts the data collectors as it did last time. Key departments I think remain funded. But we’ll see in the next few days. The situation is very fluid in the Senate and the debates over funding for the Department of Homeland Security continue as we approach the midnight Friday deadline.
Earnings from Microsoft, Meta and Tesla are coming out this afternoon.
Dow Jones +12 points
S&P 500 -0.57…as in unchanged
Nasdaq +40
Oil (WTI) $63.45…keeps rising on geopolitical concerns, i.e., Iran.
Gold $5350…another record high, up 5% today.
Silver $117.00…essentially at a record, depending on the contract you are looking at.
Bitcoin $89,065 [4:00 PM ET]
U.S. 2-yr. 3.58%
U.S. 10-yr. 4.25%
Japanese 10-yr. 2.23%…up five basis points.
Back with you tomorrow.
Brian Trumbore