In the Midst of Turbulence: A Look Ahead to the January 2026 FOMC Meeting

Upcoming FOMC Meeting in Early 2026

The Federal Open Market Committee is scheduled to convene its first meeting of 2026 on January 27-28. During their previous session in December, the committee implemented a widely anticipated reduction of 25 basis points, lowering the federal funds rate target range to 3.50-3.75% from the previous 3.75-4.00%.

This marked the third precautionary rate cut aimed at countering weakening job growth. However, the decision was met with notable opposition within the committee—two members, Goolsbee and Schmid, voted against the cut, while Miran, associated with Trump, advocated for an even larger 50 basis point reduction. Additionally, the dot plot revealed that a total of six members were not in favor of lowering rates.

Insights from the official statement, Chair Powell’s remarks following the meeting, and the released minutes provide further context on the committee’s internal debates and outlook.