WSJ What’s News Fed Enters a New Holding Pattern on Interest Rates
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Jan 28, 2026 
Kate Clark, WSJ reporter on startups and AI, and Spencer Jakab, WSJ investing columnist on Fed policy. They discuss the Fed’s pause on rate cuts and what data could prompt future moves. They cover internal Fed disagreements and market reactions. Kate explains why investors fund AI labs without products and the talent risks those labs face.
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Fed Enters A Measured Holding Pattern
- The Fed paused after three straight cuts and signaled openness to future cuts without rushing into them.
- Spencer Jakab says the Fed will "let the data light the way" and needs dramatic economic weakness to restart cuts.
Data, Not Dates, Drive Rate Decisions
- The Fed needs clear signs of weakness in jobs or manufacturing to justify cuts.
- Spencer Jakab notes we haven't seen those soft signals so far this year.
Dissent Signals Political Alignment
- Two officials wanted an immediate quarter-point cut, reflecting internal disagreement.
- Jakab says the dissenters' stance aligns with political pressure and normal Fed functioning.