The meeting will mark the first since Federal Reserve Chair Jerome Powell confirmed he is under investigation by the Department of Justice.

The Bank of Canada also held its policy rate at its last scheduled rate announcement in December. REUTERS/Blair Gable · REUTERS / Reuters The Bank of Canada (BoC) held its overnight interest rate steady at 2.

Bankrate’s annual Interest Rate Forecast estimates another three cuts worth 0.75 percentage points in 2026. Investors are betting that the Fed will cut interest rates twice in 2026, starting in June, according to CME Group’s FedWatch tool, and Fed policymakers see just one cut this year.

Explore current mortgage rates and what they mean for homebuyers

The top economist at J.P. Morgan believes the Federal Reserve is done cutting interest rates and will hold policy steady through 2026, with the next move likely a hike in 2027. “We now expect the Fed to hold rates throughout 2026 with the next move to hike later in 2027,” wrote Michael Feroli, the bank’s chief US economist, in a client note.

After cutting interest rates three times in a row last year, the Federal Reserve indicated last month it probably won’t lower interest rates again for a while. A months-long pause, cemented by key economic data released Friday,

The Bank of Canada is holding its key interest rate at 2.25 per cent for a second consecutive meeting, a move that was widely expected by analysts.

The Federal Reserve cut rates by 0.75% in 2025 amid economic uncertainty. Inflation and unemployment trends are diverging, complicating future Fed decisions on rate cuts. Odds for a January 2026 rate cut have shifted ahead of key economic data releases.