Bloomberg Intelligence Instant Reaction: Jay Powell on the Fed Decision
Jan 28, 2026
Michael McKee, a Fed correspondent who reported live from the press conference; Jeffrey Rosenberg, a BlackRock senior investment pro on bonds and macro; Stephanie Roth, a Wolf Research analyst focused on labor and inflation. They dissect Powell’s cautious tone and the Fed holding rates. Conversation covers bond market reactions, wealth effects from tech gains, sticky inflation risks, and implications for labor and nominal GDP.
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Powell Avoids Politics, Signals Caution
- Jay Powell kept the press conference intentionally bland to avoid political engagement and market fireworks.
- The Fed signaled caution while noting improvements in the economy and reduced tension between employment and inflation.
No More Cuts Under Powell
- Stephanie Roth expects data improvement and believes there will be no more cuts under Chair Powell.
- She sees Powell as winding down his tenure and avoiding uncomfortable questions.
Goods Inflation Likely Temporary
- Goods inflation may stay firm near-term due to seasonal factors and stimulus but should revert to near 0% year-over-year later.
- Beyond that, inflation dynamics will be driven mainly by services rather than goods.