In the first meeting of 2026 the Federal Reserve voted to keep the interest rate at a steady range of 3.5-3.7% this time around instead cutting it like they've been doing previously. They believe the economy is growing at a steady pace and also want to prioritize the stabilization of the job market while letting inflation drop back to 2%. The Wall street analysts expected this outcome and also expect these rates to hold till June. The Fed also hopes to balance the economy against inflation caused by the tariff policies induced by the Trump Administration.
This article was released days before the leadership transition to Kevin Warsh. The Fed's decision to steady the economy by allowing the labor market to stabilize is very important. With the AI bubble ever-growing and new tariff policies, massive amounts of layoffs have been taking place all over the U.S, leaving the job market at a low. With this decision, hopefully the job market the catch up before the Fed's next major decision. If our job market continues to decrease we could be on the verge of a recession.
https://www.cnbc.com/2026/01/28/fed-rate-decision-january-2026.html
I recently listen to a npr podcast about the AI bubble and it spoke about how no one really knows if we are in a bubble. "Their is only a 60% chance we are in a bubble and most the time when you are in a bubble you can't tell your in a bubble" (Planet Money). So, all this talk about the Ai Bubble make me wonder do you think mass unemployment and inflation is near or if the right moves are made by the FED everything will work out "fine"?
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