MARKET UPDATE
Fed Holds Target Rate Unchanged
1.29.2026
This morning equity markets are mixed and Treasury yields held steady with the 10-year yield trading near 4.25%. The newest CPI data continues to remain stubbornly above the Fed's 2% target. On the other hand, recent jobs and unemployment data has started to improve in recent months. All three of the fall FOMC meetings resulted in 25bps cuts, and they held rates steady again this week as the first meeting of 2026 wrapped. The December forecast materials suggest that the target rate will likely continue to move modestly lower over the next year. The Fed continues to observe the economic data and emphasize that their focus is on maintaining the dual mandate of 2% inflation and full employment. Prior to the September meeting, the FOMC preferred to be patient before lowering rates, as they observed the available data on these two key metrics in today's dynamic macroeconomic environment. Notable topics at this point in the current economic cycle are one time structural changes due to the pandemic, as well as recent global trade policy changes. The FOMC will continue to observe and discuss how these events and new rate cuts impact inflation and employment in the US.
- CMS Staff
TREASURY YIELDS
Term
3 Month
6 Month
2 Year
5 Year
10 Year
30 Year
Current
3.66%
3.64%
3.56%
3.82%
4.23%
4.85%
Last Month
3.62%
3.59%
3.45%
3.67%
4.11%
4.79%
BENCHMARKS
PRIME:
DJIA:
Crude Oil (WTI):
YEN:
Gold:
1 Year CMT:
1 Month T-Bill:
Fed Funds Effective:
Next FOMC Meeting:
6.75%
49,071.56
$65.42
153.0900
$5,375.60
3.49%
3.695%
3.62%
Mar 17-18, 2026
​
Source: Bloomberg