Fed Minutes Release: "Hold" Remains, But Risk Signals Shift
The Federal Reserve released the minutes of its meeting (FOMC Minutes) last night, showing how policymakers reconsidered the balance of risks between inflation and growth, after previously opting to hold interest rates steady.
At its January 27–28, 2026, meeting, the Fed held its target benchmark interest rate at 3.50%–3.75%. This decision followed a previous period of easing, but the committee believed it still needed time to ensure inflation and economic activity remained on target.
The minutes also revealed a clear divergence of opinion: two officials favored a 25 basis point rate cut, while the majority supported "holding." This confirms that the Fed's internal stance is not yet fully aligned on the appropriate timing for further rate cuts.
Most notably, some officials even left open the possibility of another rate hike if inflation remains above target. This signals a shift in tone: not just discussing "when to cut," but also preparing for scenarios if inflation becomes stubborn again.
The market reaction tended to be supportive of the dollar. Following the release of the minutes, the US dollar strengthened and US yields rose, as the main message was clear: the Fed is in no rush to cut rates and remains focused on controlling inflation.
Going forward, market participants will continue to monitor whether the Fed's "risk balance" is tilting more toward inflation or whether it is becoming more concerned about growth and employment. As long as the minutes emphasize a cautious stance, markets will typically remain sensitive: the dollar and yields readily strengthen on solid US data, while gold tends to move selectively following interest rate expectations. (asd)
Source: Newsmaker.id
