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FOMC Introductory Statement, January 28, 2026
Summary
The Federal Open Market Committee remains focused on achieving maximum employment and stable prices. The U.S. economy has shown solid growth as it enters 2026, despite low job gains and a stable unemployment rate of 4.4%.
Monetary policy remains unchanged, with the committee maintaining the target range for the federal funds rate. Recent indicators suggest that economic activity is expanding, although the housing sector remains weak.
Job growth has slowed, with non-farm payrolls declining at an average pace of 22,000 per month. Private payrolls, however, have seen a modest increase, indicating some resilience in the labor market.
Inflation has eased from its mid-2022 highs but remains elevated, with total PCE prices rising 2.9% over the past year. Core PCE prices also reflect ongoing inflationary pressures, particularly in the goods sector.
Perspectives
short
Federal Reserve
- Maintains focus on dual mandate of maximum employment and stable prices
- Decides to leave policy rate unchanged to support economic progress
- Notes solid economic growth despite low job gains
- Highlights stabilization in the unemployment rate at 4.4%
- Acknowledges inflation remains elevated but has eased from previous highs
- Commits to making policy decisions based on evolving economic data
Neutral / Shared
- Reports on mixed signals in the labor market with low job gains
- Indicates ongoing inflationary pressures in the goods sector
- Mentions weak performance in the housing sector
Metrics
unemployment
4.4%
unemployment rate in December
A stable unemployment rate indicates a potentially resilient labor market.
The unemployment rate was 4.4% in December and has changed little in recent months.
non-farm payrolls
22,000 units
average decline in total non-farm payrolls over the last three months
A decline in payrolls suggests weakening job growth, which could impact economic stability.
Total non-farm payrolls declined at an average pace of 22,000 per month over the last three months.
private payrolls
29,000 units
average rise in private payrolls excluding government employment
Growth in private payrolls indicates some resilience in the job market despite overall declines.
With excluding government employment, private payrolls rose at an average pace of 29,000 per month.
Key entities
Timeline highlights
00:00–05:00
The U.S. economy is showing solid growth as it approaches 2026, with low job gains and a stable unemployment rate of 4.4%.
- The U.S. economy expanded at a solid pace last year and is entering 2026 on firm footing
- Job gains have remained low, with the unemployment rate stabilizing at 4.4% in December
- Total non-farm payrolls declined by an average of 22,000 per month over the last three months
- Private payrolls rose at an average pace of 29,000 per month, excluding government employment
- Inflation has eased from its mid-2022 highs but remains elevated, with total PCE prices rising 2.9% over the past year
- Core PCE prices, excluding food and energy, rose 3.0%, largely due to inflation in the goods sector