FOMC says economy expanded last year and holds policy rate steady

Unidentified Speaker, speaking for the Federal Open Market Committee, said the U.S. economy "expanded at a solid pace last year" and is entering 2026 "on a firm footing." The statement added that job gains have stayed low, the unemployment rate has shown signs of stabilization, and "inflation remains somewhat elevated."

The statement concluded: "In support of our goals, today, the Federal Open Market Committee decided to leave our policy rate unchanged." The transcript does not provide a numeric level for the policy rate, any vote tally, or further details about next steps.

Why it matters: the committee’s decision to keep its policy rate unchanged preserves the current stance of U.S. monetary policy, which affects borrowing costs for households and businesses and shapes the outlook for inflation and employment. The brief statement summarizes the committee’s assessment of growth, labor markets and inflation but gives no implementation details or a timetable for future changes.

In the transcript the speaker emphasized three points about economic conditions: that economic growth last year was solid, that job gains had been modest even as unemployment showed some stabilization, and that inflation remained somewhat elevated. Those assessments framed the decision to maintain the current policy rate. The statement did not identify which committee members supported or opposed the decision, did not provide a vote count, and did not state the exact target range or target level for the policy rate.

The committee’s language—linking the rate decision to its goals for employment and inflation—signals continuity in the Federal Open Market Committee’s approach but leaves the timing and magnitude of future moves unspecified. No further procedural actions or directives appear in the transcript.