Fed officials remain split on future rate moves following January pause

Federal Reserve officials remain divided on future policy moves despite a near-unanimous January pause. Some members even suggested hikes if inflation persists.

Minutes from the Federal Reserve's January 27-28 meeting released on February 18, 2026, show that while the Federal Open Market Committee voted to maintain the policy rate at 3.50%-3.75%, officials were divided regarding the future path of interest rates. The report highlights that several members flagged the possibility of future rate increases should inflation remain above the central bank's 2% target. This internal division is a significant development for the US USUS as it shapes expectations for national monetary policy.
FILE PHOTO: Renovations continue at the Federal Reserve Board building in Washington, D.C., U.S., November 14, 2025. REUTERS/Elizabeth Frantz/File Photo
FILE PHOTO: Renovations continue at the Federal Reserve Board building in Washington, D.C., U.S., November 14, 2025. REUTERS/Elizabeth Frantz/File Photo
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