Fed Holds Rates Amid Calm

Date: January 29, 2026

Fed Holds Rates Amid Calm

Summary

Market Snapshot

Prior Close
Asset Level Days Change
S&P 500 6,987.00 +0.01%
Nasdaq 23,857.45 +0.17%
Spot VIX 16.71 +2.20%
2 Year Bond Yield 3.58 0 bps
10 Year Bond Yield 4.26 +1 bps
EUR/USD 1.1949 +0.03%
USD/JPY 153.44 +0.04%
GBP/USD 1.379 -0.04%
WTI Oil 62.39 +2.90%
Gold 5,510.23 +1.67%
Bitcoin 87,638.08 -1.71%

Prior Economic Events

Data Prior Cons Actual
MBA 30-Year Mortgage Rate6.16-6.24
EIA Weekly Crude Oil Inventory3.6m1.8m-2.3m
EIA Weekly Gasoline Inventory6.0m1.3m224,000
Fed Interest Rate Decision3.753.753.75
Fed Press Conference---

Upcoming Economic Events

Data Prior Cons Time
Trade Balance-29.4m-40.5m08:30
Exports Level302m-08:30
Imports Level331.4m-08:30
Weekly Jobless Claims200,000205,00008:30
Ny Fed Bill Purchases 1 To 4 Months--09:20
Factory Orders Month-over-Month-1.301.6010:00
Federal Reserve Balance Sheet6590m-16:30
Producer Price Index Month-over-Month0.200.2008:30
Core PPI Month-over-Month00.2008:30
Chicago PMI43.504409:45

Yesterday's Recap

The Fed held interest rates steady at 3.75% in a widely anticipated decision, with Chair Powell highlighting solid economic expansion and stabilized unemployment at 4.4%. EIA crude oil inventories fell 2.296 million barrels, exceeding the 1.75 million draw consensus, while gasoline stocks rose modestly to 224,000 barrels against expectations of 1.3 million. Mortgage rates edged up to 6.24% from 6.16%, reflecting ongoing affordability challenges. Markets traded calmly with VIX at 16.71, S&P 500 at 6987.00, and gold at 5510.23, as equities digested the Fed's pause. Bond yields held steady at 3.58% for 2-year and 4.26% for 10-year, with FX showing limited volatility and bitcoin at 87638.08.

The Day Ahead

Trade balance data at 8:30am is expected at -$40.5 billion, potentially pressuring the dollar if deficits widen further. Weekly jobless claims at 8:30am, forecasted at 205,000, will gauge labor market trends ahead of payrolls. Factory orders at 10:00am, consensus 1.6%, may reveal manufacturing momentum. Producer Price Index at 8:30am, expected at 0.2%, will monitor inflation pressures. (cont...)

Other Economic Notes

Housing market optimism persists despite rate hikes, with inventory gains and price moderation supporting buyer interest. Trump's economic rhetoric touts booming growth, yet data obscures wealth disparities favoring top earners. Global immigration policies diverge, with Spain embracing migrants for workforce needs while US tensions escalate.

Fed Watch

In the rate-cutting cycle, the Fed's hold signals caution on pace, favoring fewer cuts in 2025 amid steady inflation. Powell's emphasis on data dependence tilts dovish for slower reductions if employment stabilizes further. Markets price two cuts this year, but recent beats support potential pauses over aggressive easing. No speeches today, but press conference reinforced gradual approach to balance growth and price stability.


Source: https://robomacro.com/Research_Notes/US_Macro_Daily_20260129.html