Bloomberg Intelligence Instant Reaction: The Fed Decides
Jan 28, 2026
Torsten Slok, Apollo chief economist who studies labor, immigration and AI-driven growth; Diane Swank, KPMG chief economist and labor-market expert; Bob Michael, J.P. Morgan fixed income strategist on rates and portfolio positioning; Richard Clarida, former Fed Vice Chair on monetary policy and yield curves. They debate the Fed decision, market and yield curve reactions, AI and productivity, immigration’s labor effects, and investor flows into U.S. assets.
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Fed Holds Rates But Keeps Cuts Possible
- The Fed left rates unchanged while keeping the door open to future cuts, signaling uncertainty on timing.
- The statement softened emphasis on jobs and inflation, shifting focus to Powell's forthcoming comments.
Waller's Dissent Signals Labor Market Concerns
- Chris Waller dissented for a 25bp cut, interpreted by markets as a possible audition for Fed leadership.
- Richard Clarida and Torsten Slok stress Waller's data-driven worry about a weakening labor market.
Powell's Press Conference Is The Key Signal
- Reporters expect Powell to clarify the path for rates since the statement offered few specifics.
- No new SEP projections were released, so the press conference is the critical guidance moment.