File: US Federal Reserve Board Chairman Jerome Powell
The Federal Reserve on Wednesday released the minutes of the Federal Open Market Committee meeting that was held on January 27–28, 2026.
The minutes revealed that if inflation persists or ticks up, the Fed may be forced to resume interest rate hikes, defying previous expectations of multiple cuts in 2026.
Divided Board : While some members suggested rate hikes might be necessary, others favored keeping rates “steady for some time,” according to Forbes.
The risk of a weakening labor market has moderated, allowing the Fed to focus more on inflation according to Yahoo Finance
Some officials warned that cutting rates too soon while inflation is still high could suggest a weakened commitment to the 2% target, according to Yahoo Finance
