FX.co ★ Fed Holds Benchmark Rate at 3.75% as Policy Pause Extends into 2026

The Federal Reserve left its key interest rate unchanged at 3.75% on 28 January 2026, extending its steady policy stance as the benchmark rate remained at the same level as the previous decision. The move signals that U.S. monetary authorities are maintaining a wait‑and‑see approach, keeping borrowing costs steady while they continue to assess the trajectory of inflation and growth.

With the benchmark rate holding at 3.75%, financial markets and businesses gain a measure of short‑term predictability on financing conditions. The unchanged setting suggests policymakers are not yet prepared to shift toward either renewed tightening or rate cuts, keeping attention firmly on incoming data to guide any future adjustments in U.S. monetary policy.