The January Fed meeting kicks off this Tuesday, January 27, and concludes on Wednesday, January 28, with the central bank's latest policy decision.
Following three straight quarter-point rate cuts to end 2025 and data showing inflation is holding steady, the central bank is widely expected to keep the federal funds rate unchanged this time around.
But Wall Street will be tuned into Federal Reserve Chair Jerome Powell's press conference – especially after the Department of Justice recently announced an investigation into the head of the central bank and as President Donald Trump is widely expected to announce Powell's replacement any day now.
"Wednesday's Fed announcement will likely keep politics in the headlines," says Chris Larkin, managing director of trading and investing at E*TRADE from Morgan Stanley. "Even though the Fed isn’t expected to cut interest rates, Jerome Powell’s press conference may be as much about Fed independence as it is policy."
The Kiplinger team is reporting live on the January Fed meeting, bringing you the news and our expert analysis of what it could mean for the economy. Scroll for the latest updates.
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There are more rate cuts to come, just not this week
The majority of Fed members believe that additional rate cuts will be necessary at some point, says Goldman Sachs economist David Mericle, but he doesn't expect the next one until June.
"Chair Powell is likely to emphasize that the FOMC has just delivered three cuts that should help to stabilize the labor market and is well positioned for now while it assesses their impact," says Mericle.
And if the labor market steadies, rate cuts become less urgent, he adds.
Mericle thinks the Fed will issue its final cut in September, bringing the federal funds rate to a target range of 3.0 to 3.25%.
"We see the risks over the next year or two as tilted to the downside because we think hikes are quite unlikely but could imagine a few reasons for additional cuts, and our probability-weighted Fed forecast is a bit below both our baseline and market pricing," he notes.
- Karee Venema
When does Jerome Powell's term as Fed chair end?
President Trump has not been subtle in his dislike of Fed Chair Powell. But the question of whether or not Trump can fire Powell is seemingly moot given that his term as Fed chair is up in just a few months – on May 15, 2026.
It's unlikely that those in Trump's inner circle will encourage him to disrupt the status quo and replace Powell before his term is over – which could potentially send stocks and bonds tumbling – given that there's such a small amount of time left.
And the president is widely expected to announce his choice for Powell's replacement any day now. Top candidates include former Fed governor Kevin Warsh, Director of the National Economic Council Kevin Hassett and Rick Rieder, BlackRock's chief investment officer of fixed income.
For what it's worth, Powell's term as a member of the Board of Governors of the Federal Reserve ends on January 31, 2028.
- Karee Venema
Expect more volatility this week, says Wedbush
Last week's volatility in the stock market, which saw the S&P 500 explore a 145-point intraday trading range and the Cboe Volatility Index (VIX) hit its highest level since November, was sparked by President Trump's turnaround on a potential annexation of Greenland and a new round of tariffs on Europe.
Wedbush analyst Seth Basham expects more volatility this week as market participants sift through a jam-packed earnings calendar and assess the January Fed meeting.
As for the Fed meeting, Basham expects the central bank to maintain a more cautious approach despite political pressure.
"We expect Fed Chair Powell to signal heightened caution at upcoming meetings," the analyst writes in a January 25 note. "With the administration running the economy hot and PCE inflation still roughly 80 basis points above the 2% target, policy changes are likely to pause for some time."
And given Powell is near the end of his term, Basham believes "he’s likely to maintain vigilance against inflation, even if it means disappointing equity investors and the President who are seeking easier financial conditions."
- Karee Venema
Fed meeting schedule for 2026
The next Fed meeting, which runs from January 27 to January 28, marks the first gathering of 2026.
"The committee meets eight times a year, or about once every six weeks," writes Kiplinger contributor Dan Burrows in his feature, "When Is the Next Fed Meeting?".
The Federal Open Market Committee "is required to meet at least four times a year and may convene additional meetings if necessary," Burrows adds, noting that "the convention of meeting eight times per year dates back to the market stresses of 1981."
Fed meetings last two days and wrap up with the release of a policy decision at 2 pm Eastern Standard Time. This is typically followed by the Fed chair's press conference at 2:30 pm.
Here is the full Fed meeting schedule for 2026:
January 27 to 28
March 17 to 18
April 28 to 29
June 16 to 17
July 28 to 29
September 15 to 16
October 27 to 28
December 8 to 9
- Karee Venema
With over a decade of experience writing about the stock market, Karee Venema is the senior investing editor at Kiplinger.com. She joined the publication in April 2021, and oversees a wide range of investing coverage, including content focused on equities, fixed income, mutual funds, ETFs, macroeconomics and more.