Fed Holds Interest Rates Steady Amidst Political Pressure, While Financial Sector Sees Notable Developments
Washington D.C. - The Federal Reserve held its benchmark interest rate steady on Wednesday, January 28, 2026, pausing from rate cuts to further assess the economy, according to NPR News. The decision came amidst a pressure campaign from President Donald Trump, who has been 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.
Powell's comments come after the Justice Department served the Federal Reserve 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. President Trump has also voiced his frustration with the construction project, viewing the Fed as hindering economic growth, Fortune reported.
In other financial news, Fidelity Investments announced the launch of its own stablecoin, the Fidelity Digital Dollar (FIDD), according to Fortune. The token will be fully backed by reserves to maintain a one-to-one peg to the dollar and will be available to both institutional and retail clients on Fidelity and exchanges in the coming weeks. "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, a new report by the Congressional Budget Office (CBO), released January 28, 2026, revealed the significant financial cost of deploying federal troops to U.S. cities for domestic law enforcement, Fortune reported. The nonpartisan analysis, requested by Senate Budget Committee ranking member Jeff Merkley (D-Ore.), found that mobilizing National Guard and active-duty Marine Corps personnel to six major American cities between June 2025 and December 2025 cost approximately $496 million. According to Fortune, the CBO estimates that maintaining the troop levels present at the end of 2025 would result in recurring costs of $93 million per month.
Executive compensation also saw notable shifts, with Goldman Sachs CEO David Solomon emerging as an early leader in pay among Fortune 500 company chiefs with a double-digit percentage raise, according to Fortune. This put him ahead of JPMorgan's Jamie Dimon and Disney's Bob Iger. The increase comes as the six biggest U.S. banks, including Goldman and JPMorgan, brought in $157 billion in combined profits, an 8% increase that marked the industry's best year since the, according to Fortune. In contrast, Starbucks CEO Brian Niccol experienced a significant pay drop after receiving $96 million in 2024 in front-loaded compensation for four months of work, Fortune reported.
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