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Posted February 3, 2026

Fed holds rates steady after strong capital investment from manufacturers

By Kristin Bartschi

In a move widely telegraphed since their last meeting, the Federal Reserve opted to leave the benchmark interest rates steady at a target range of 3.5% to 3.75% on Jan. 28, their first meeting of 2026.


“With tension between the two sides of the dual mandate and a policy rate nearing estimates of the neutral rate, we can expect the Federal Reserve to proceed cautiously until economic data dictates a clear path,” said Christopher Chidzik, principal economist of AMT – The Association For Manufacturing Technology. “The historically strong demand for manufacturing technology at the end of 2025 indicates that interest rates are not suppressing demand for manufactured goods, and the companies making those products and parts can comfortably make the capital investments necessary to meet that demand.”

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