Fed Holds Interest Rates Steady Amid Political Pressure, Fidelity Enters Stablecoin Market, and Allies Seek Deals with China
The Federal Reserve held interest rates steady on Wednesday, January 28, 2026, pausing rate cuts to assess the economy, according to NPR News. This decision came amidst increasing pressure from President Donald Trump, who has been publicly urging the central bank to lower rates more aggressively.
Federal Reserve Chair Jerome Powell addressed concerns about the Fed's independence during a press conference following the decision. "We haven't lost it. I don't believe we will. I certainly hope we won't," Powell stated, as reported by Fortune. His comments followed the Justice Department's serving of grand jury subpoenas targeting Powell over his June 2025 congressional testimony regarding the $2.5 billion renovation of the Fed's headquarters, according to Fortune.
In other financial news, Fidelity Investments announced on Wednesday the launch of its own stablecoin, the Fidelity Digital Dollar (FIDD), according to Fortune. Like other stablecoins, FIDD will be fully backed by reserves to maintain a one-to-one peg to the dollar. Fidelity stated that FIDD would be available from Fidelity and on exchanges in the coming weeks to both institutional and retail clients. "As general adoption in the digital assets space continues to evolve, we felt this was the logical next step for the marketplace and our clients," said Mike O'Reilly, president of Fidelity Digital Assets, in a statement to Fortune.
Meanwhile, President Trump's tariffs and rhetoric have spurred some longtime U.S. allies to diversify their trade ties away from the U.S., according to NPR News. Some are reportedly seeking deals with China and India.
In Minneapolis, activists are calling for a nationwide day of no school, no work, and no shopping across the U.S. on Friday, January 30, to protest President Trump's immigration crackdown following the fatal shootings of two people by federal agents, according to Time. The National Shutdown campaign's website stated, "The people of the Twin Cities have shown the way for the whole country – to stop Immigration and Customs Enforcement’s reign of terror, we need to SHUT IT DOWN." Thousands of Minnesotans took to the streets and hundreds of businesses shuttered the previous Friday in a similar general strike to call for an end to federal immigration enforcement operations in the state after an ICE officer shot 37-year-old Renee Good earlier in the month, according to Time.
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