WASHINGTON, D.C. – The Federal Reserve kept interest rates steady in its first meeting of 2026, as economists expected.

Federal Reserve officials kept lending rates between 3.5-3.75% after issuing three cuts last year. In a statement, officials pointed to low job gains and stabilization in the unemployment rate behind their decision.

Officials urged a return to the 2% inflation rate and increasing employment numbers. The January inflation report, based on December 2025 data, revealed a 2.7% inflation rate.

In December 2025, the unemployment rate was 4.4%.

“The Committee’s assessments will take into account a wide range of information, including readings on labor market conditions, inflation pressures and inflation expectations, and financial and international developments,” Federal Reserve officials wrote in a statement.

Two governors on the board, Stephen Miran and Christopher Waller, voted against keeping the rates steady, instead suggesting lowering rates by 0.25%. The nine other members of the board voted to keep rates unchanged, including Chair Jerome Powell.

Powell is expected to hold a press conference on the decision Wednesday afternoon.