In a press conference on January 28, 2026, Federal Reserve Chair Jerome Powell addressed the current economic landscape, emphasizing the dual mandates of maximum employment and stable prices. The U.S. economy showed solid expansion, but job growth appeared sluggish, with an unemployment rate of 4.4%. The Federal Open Market Committee chose to keep the policy rate unchanged, following recent cuts totaling 75 basis points. Inflation remains elevated at 2.9%, indicating challenges in meeting the 2% target, partly due to tariff impacts on goods prices. Powell noted stabilizing signs in the labor market while acknowledging ongoing concerns, particularly from inflation and geopolitical risks. He asserted that monetary policy approaches would remain data-driven and flexible, emphasizing the importance of the Fed's independence to maintain public trust and manage economic challenges effectively. Overall, Powell expressed cautious optimism regarding growth drivers, including consumer spending and AI advancements, while acknowledging the complexities of current economic conditions.