The Federal Reserve left its benchmark federal funds rate unchanged at 4.25% to 4.50% at its January 2026 meeting, extending the level in place since December 2025 as policymakers weighed inflation still above target against a cooling labor market and uneven growth. Chair Jerome Powell said the economy is "at a crossroads," and the Federal Open Market Committee said future moves will depend on incoming data. Bloomberg Markets separately reported that the Fed’s preferred PCE price index is projected at 2.3% for 2026, above the central bank’s 2% goal, reinforcing a cautious outlook for rate cuts. December 2025 Fed projections showed a median expectation of two cuts in 2026, while CME FedWatch indicated markets were pricing roughly a 60% chance of a cut by June; Bloomberg also said investors were focused on FOMC meetings through October 2026 and on unemployment and PCE data. Bloomberg’s report cited a 3.5% to 3.75% federal funds target range since the start of the year, a figure that conflicts with the January 2026 meeting account showing a 4.25% to 4.50% range.