The U.S. Federal Reserve held interest rates steady in its first 2026 meeting, maintaining its target range at 3.50%-3.75%. The Federal Open Market Committee cited elevated inflation and a solid economic expansion, offering no guidance on future rate cuts. Cryptocurrency markets showed a muted initial reaction, with Bitcoin trading around $89,000 and Ethereum near $3,000 as investors awaited further signals.
The U.S. Federal Reserve held interest rates unchanged on Wednesday, 28 January, maintaining its target range for the federal funds rate at 3.50%–3.75%. In its first interest rate decision in 2026, the Federal Open Market Committee said economic activity continues to expand at a solid pace.
Inflation remains “somewhat elevated,” reinforcing the Fed’s data-dependent stance. The Committee reiterated its commitment to returning inflation to its 2% target.
Officials did not offer guidance on when rate cuts might begin. The statement emphasised that uncertainty around the economic outlook remains elevated.
Major crypto assets showed limited immediate reaction following the decision. Bitcoin was trading around $89,000, broadly flat on the session and remaining below its short-term moving averages.
Ethereum followed a similar pattern, hovering near $3,000. Like Bitcoin, ETH’s price action suggests caution rather than a decisive response to the policy announcement.
The lack of an immediate move across crypto mirrors behaviour seen in traditional markets. Investors will be watching Chair Jerome Powell’s remarks for any nuance on inflation progress or labour market conditions.
