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US Fed FOMC Meeting Live Updates: The US Federal Reserve is set to announce its policy decision on Wednesday, September 17 (local time), which is most likely to be its first rate cut this year. The same is set to come at the back of a weakening labour market, stubborn inflation and US President Donald Trump's push for lower borrowing costs. Earlier this week, Trump even predicted a "big cut" from the US Fed. "I think you have a big cut. It's perfect for cutting," he told reporters on Sunday. The US dollar approached its lowest level since March 2022 ahead of the US Fed decision. The US job growth cooled in August with the unemployment rate increasing to its highest level since 2021. Meanwhile, inflation in the US remains above the Fed's 2% goal and could increase further if the tariffs push costs up.
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CNBC TV18•29-01-2026, 07:31

Fed Holds Rates Steady: Powell Cautions on Inflation, Unclear Rate Path

  • •The Federal Reserve maintained its benchmark interest rate at 3.5–3.75%, keeping policy unchanged.
  • •Fed Chair Jerome Powell stated that the US economy is strong, but the future path of interest rates remains uncertain due to inflation risks.
  • •Treasury yields increased following the announcement, as the Fed noted robust economic activity and signs of unemployment stabilization.
  • •Powell indicated that current data does not suggest the policy is significantly restrictive, hinting at potential future adjustments.
  • •Traders are anticipating two quarter-point rate cuts by the end of 2026, according to the CME FedWatch Tool.

Why It Matters: Fed keeps rates unchanged, acknowledges strong economy but warns of inflation risks and unclear future rate path.

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