Fed Holds Rates Steady as Unemployment Stabilizes

The Federal Reserve held interest rates unchanged on Wednesday in a 10-2 vote, with officials pointing to signs of stabilization in the labor market as they signaled a pause in monetary easing.

The Federal Open Market Committee maintained the benchmark federal funds rate in a range of 3.5 percent to 3.75 percent, following three consecutive quarter-point cuts at the end of 2025. Governors Christopher Waller and Stephen Miran dissented, favoring a quarter-point reduction.

The split decision shows that the Fed remains divided. December’s meeting saw three dissents, but officials voted in different directions, with two opposed any cut and one favored a larger reduction.

In its post-meeting statement, the committee said “job gains have remained low, and the unemployment rate has shown some