The Federal Reserve opted to keep rates unchanged on Wednesday, a decision made as markets continue to register uncertainty from multiple macroeconomic events, including the possibility of more tariffs. Rates now stay fixed in a range between 3.5% and 3.75% after the reserve cut rates in three previous meetings, each time by 0.25%.
The Federal Reserve meeting is a key event that determines market volatility and stock price movement around the world. It takes place eight times a year.
🚨BREAKING: Federal Reserve pauses rate cuts, keeps interest rates at 3.50%–3.75%
All eyes on Powell speech now.#FED pic.twitter.com/5JQvvnez7y— Coin Headlines (@coinheadline) January 28, 2026
The market, which was keenly awaiting the federal rate policy decision, is recording all-time highs for gold and the stock market. Gold continues to skyrocket, with its spot price briefly going above $5,300 for the first time on Wednesday before dipping back.
The price of gold futures now hovers clean above the $5,300 mark with a price of $5324.61.
Source: Investing.com
Alongside this, the S&P500 is also clocking all-time highs as it briefly touched 7,000 points in the early hours of U.S. stock market trading.
While stocks and gold are on the uptick, the dollar has weakened considerably, with the U.S. dollar index touching a 4-year low of 96. It recovered soon after and at the time of reporting, sits at 96.7.
Source: Trading View
The price of BTC is just shy of the $90,000 mark, trading at $89,244.06.
Trump soon to pick Powell’s replacement
U.S. President Donald Trump said on Tuesday that he will soon be picking a replacement for the role of Federal Reserve Chairman, a decision that holds much weight for the U.S. economy.
Trump has already pressured current chairman Jerome Powell repeatedly, claiming on multiple occasions that he is unfit for the role of Federal Chair.
Powell is also in the midst of a criminal case filed by the U.S. Department of Justice.
In a press conference after the Federal Reserve’s decision, Jerome Powell said,
“The point of independence is not to protect policymakers or anything like that. It just is that every advanced economy, democracy in the world has come around to this common practice. It’s just an institutional arrangement that has served the people well, and that is have a separation between–to not have direct elected official control over the state of monetary policy,”
(Update: The price of spot gold has crossed $5,400)
(Second update: The price of gold has crossed $5,500)
