The first FOMC meeting of 2026 takes place on January 27-28. At the December meeting, the FOMC made a widely expected 25 bps cut to the target range for the federal funds rate to 3.50- 3.75% from 3.75-4.00%. This third insurance cut against the deterioration in employment growth met with substantial internal resistance, with two dissenters (Goolsbee and Schmid) who did not want to cut (in contrast Trump’s quartermaster Miran wanted to cut by 50 bps). What’s more, the dot plot showed that in total 6 participants did not want to cut. From the FOMC statement, Powell’s post-meeting press conference, the minutes and ... (full story)