The Fed holds rates at 3.75% in 2026, citing inflation and a strong job market, delaying cuts until clearer progress.

The Federal Reserve has kept interest rates at 3.75 percent, citing persistent inflation pressures and a strong labor market despite signs of economic cooling. Officials emphasized that inflation remains above the 2% target, particularly in services and housing, and are awaiting clearer evidence of sustained progress before considering rate cuts. A data-driven approach remains central, with policymakers prioritizing price stability over short-term growth boosts. No immediate rate reductions are expected, as the central bank signals a wait-and-see stance through 2026.