Safeload Coverage
The Federal Reserve announced earlier Wednesday it would leave interest rates at 3.5 to 3.75 percent with no cuts coming after the two-day January meeting. The voting for the monetary policy rate to remain unchanged was 10-2.
Federal Reserve Chair Jerome Powell announced the U.S. economy has expanded at a solid pace last year and entered the 2026 year on a “firm footing.” At the same time, job gains were low, but the unemployment rate showed signs of stabilization. Inflation remains somewhat elevated, Powell said.
Moving Help® will explain why the Federal Reserve came to this decision, and what it means for homebuyers who are looking to buy or sell a house in the near future.
Who Voted for and Against This Policy Rate?
The Federal Open Market Committee’s vote was 10-2, with 10 members voting for the monetary policy rate to remain unchanged and to leave the target range for the federal funds rate at 3.5 to 3.75 percentage points.
The two dissenting members — Governors Stephen Miran and Christopher Waller — preferred to lower the target range for federal funds rate by 0.25 percentage points during the January meeting.
| Voting Member Name | How Did They Vote? |
|---|---|
| Jerome H. Powell, chair | Yes |
| John C. Williams, vice chair | Yes |
| Michael S. Barr | Yes |
| Michelle W. Bowma | Yes |
| Lisa D. Cook | Yes |
| Beth M. Hammack | Yes |
| Philip N. Jefferson | Yes |
| Neel Kashkari | Yes |
| Lorie K. Logan | Yes |
| Anna Paulson | Yes |
| Stephen I. Miran | No |
| Christopher J. Waller | No |
Why No Cuts to Interest Rates?
Economic activity has expanded since the December meeting, but job gains were low, however. Additionally, inflation remains somewhat elevated since it’s above the preferred 2.0 percent target.
The data distortions from the government shutdown are going away, Powell said. The economic activity improved, and the labor market showed stabilization. Inflation performed about as expected, he said.
This is the first pause on cutting rates after three consecutive cuts dating back to July 2025. The committee had broad support for holding today, Powell said. Powell acknowledged the committee had dissents for another rate cut.
What Does the Future Hold?
The Federal Reserve’s main dual mandate goals of maximum employment and stable prices for the benefit of the American people.
A reporter asked whether unemployment and inflation were in balance. It’s hard to say whether they’re fully in balance, but they think their policy is in a good place, Powell said.
“The upside risks to inflation and the downside risks to employment have diminished, but they still exist,” he said. “There’s still some tension between the mandates.”
Another reporter asked about the effects of tariffs and whether it already has moved through the U.S. economy, and Powell said it has moved through. He also was asked about what it means for goods and services.
“These elevated readings largely reflect inflation in the goods sector, which has been boosted by the effects of tariffs,” Powell said. “In contrast, disinflation appears to be continuing in the services sector.”
As far as the future, the Feds are open to cutting back on policy, but prices would need to fall for them to loosen policy. We’ll just have to see how the data leads us, he said.
What Does This Mean for Home Mortgage Rates?
Because the Federal Reserve didn’t cut interest rates, housing mortgage rates will continue to see similar rates recently.
Housing mortgaging rates won’t see a rapid decline in interest rates. Even without the cut in interest rates, mortgage rates have been falling since December 2025, however.
From Dec. 4, 2025, to Jan. 2, 2025, a 30-year mortgage rate has hovered between 6.06 percent to 6.22 percent, according to Freddie Mac. The rate has been on a downward trend since December 2025.
During the same time frame, a 15-year mortgage rate has hovered between 5.38 percent to 5.54 percent, according to Freddie Mac. A 15-year mortgage rate has been on a downward trend as well but not as downward as a 30-year mortgage rate.
What Does This Mean for People Looking to Move?
Housing mortgage rates are still higher than they were pre-pandemic.
Housing mortgage rates for a 30-year loan and a 15-year loan are still lower than the peak 7.79 percent 30-year mortgage rate and 7.03 percent 15-year mortgage rate in late October 2023.
Other Federal Reserve News
President Donald Trump has been wanting the Federal Reserve to continue to lower rates. Powell and President Trump have publicly disagreed in recent months about cutting rates.
Powell announced earlier this month he had been subpoenaed by the Department of Justice.
During the press conference, a reporter asked Powell about his decision as to why he attended the oral arguments at the Supreme Court earlier this month in the Cook case.
“I will tell you why I attended,” he said. “I would say that, that case is perhaps the most important legal case in the Fed’s 113-year history. And I, as I thought about it, I thought it might be hard to explain why I didn’t attend.”
“In addition, Paul Volcker went to a Supreme Court case famously, in I guess 1985 or so, so it’s precedented, and I thought it was an appropriate thing, and I did it,” he said.
Multiple reporters asked about his future, about whether he would stay on the Fed’s Board of Governors, and about the Fed’s independence. He either wouldn’t comment on the question asked, or he referred to a previous statement. Additionally, he didn’t have any new information as to whether he would remain as a governor on the Federal Reserve.
Powell’s term for chair ends May 15.
Trump will pick his own person to replace Powell after the U.S. Senate confirms Trump’s pick for chair. The list of candidates was 11, and it has been narrowed to four candidates after Treasury Secretary Scott Bessent interviewed all the candidates.
The final candidates are Kevin Hassett (director of National Economic Council), Kevin Warsh (former Fed governor), Rick Rieder (BlackRock CIO), and Waller, who voted for a rate cut at January’s meeting.
The next Federal Reserve meeting is scheduled for March 17-18, 2026.
