FOMC Rate Decision January 2027

The Federal Open Market Committee (FOMC) announces its next interest rate decision on Wednesday, January 27, 2027, at 2:00 pm ET (7:00 pm London), following a two-day policy meeting. The FOMC is the branch of the US Federal Reserve that sets the federal funds rate, the benchmark interest rate that influences borrowing costs across the American economy and, through knock-on effects on the dollar and global capital flows, much of the rest of the world. Full schedule and background on every 2027 meeting: FOMC Rate Decision hub.

Because this page is published well ahead of the meeting, neither the prior rate path through late 2026 nor a published consensus forecast is locked in yet. Economists at banks such as Goldman Sachs, JPMorgan and Deutsche Bank typically update their federal funds rate forecasts in the weeks before each meeting, and traders price probabilities through tools such as the CME FedWatch tool, built from fed funds futures contracts. Readers wanting the live number should check the Federal Reserve’s own FOMC calendar or FedWatch closer to January 27, 2027, since those figures move as new inflation and jobs data arrive.

What is the FOMC and what does it decide?

The FOMC is the Federal Reserve’s monetary policy committee. It is responsible for setting the target range for the federal funds rate, the rate at which banks lend reserves to one another overnight, which in turn shapes mortgage rates, credit card rates, savings yields and business borrowing costs. The committee operates under a dual mandate set by Congress: maximum sustainable employment and stable prices, which the Fed interprets as inflation averaging around 2% over time.

The FOMC has twelve voting members: the seven governors of the Federal Reserve Board, the president of the Federal Reserve Bank of New York (a permanent voter) and four of the remaining eleven regional Reserve Bank presidents, who rotate onto the committee annually. Non-voting regional presidents still attend meetings and contribute to the discussion, and their comments often move markets even without a formal vote.

The committee meets eight times a year, roughly every six to seven weeks, to review incoming economic data and decide whether to hold, raise or cut the policy rate. Four of the eight meetings each year, including January, are followed by updated economic projections and a press conference from the Fed Chair.

When is the January 2027 FOMC decision announced?

The decision is released at 2:00 pm ET (7:00 pm London) on Wednesday, January 27, 2027, alongside the FOMC’s post-meeting statement. The Fed Chair holds a press conference roughly thirty minutes later, at around 2:30 pm ET, to explain the committee’s reasoning and take questions from journalists. The minutes of the meeting, which give a fuller account of the discussion and any dissenting views, are published three weeks later. Because January falls in the first quarter of the year, this meeting is one of the four that typically comes with updated Summary of Economic Projections, including the closely watched “dot plot” showing individual officials’ rate expectations, though the Fed confirms the exact schedule for projection-linked meetings nearer the date.

What to expect

At the time of writing, the rate set at the preceding meeting, scheduled for December 2026, has not yet been announced, so this page cannot state a verified prior rate or a published consensus forecast for January 2027 without risking inaccuracy. A consensus forecast has not yet been published for this specific meeting. As the date approaches, expect to see probabilities from the CME FedWatch tool and forecasts from economists surveyed by Reuters and Bloomberg, which typically converge in the final week or two before the announcement as fresh inflation (CPI and PCE) and jobs reports come in.

The table below is intentionally left for the Fed’s own published record. Readers can verify the sequence of recent decisions, including the December 2026 outcome once announced, directly on the Federal Reserve’s FOMC calendar page, which lists every statement and the resulting target range.

Market impact scenarios

What will the statement and press conference signal?

Markets scrutinise the FOMC’s statement line by line for changes in forward guidance, the language the committee uses to hint at its next move. Analysts watch for shifts in wording around the labour market, inflation progress and “balance of risks”, as well as any change to the pace of balance sheet reduction (quantitative tightening). Dissenting votes, where one or more members publicly disagree with the majority decision, are rare but closely tracked as a signal of division on the committee. During the press conference, journalists typically press the Chair on the timing of future moves, the strength of the labour market and any risks from fiscal policy or global events. None of these details can be confirmed this far ahead of the meeting, so treat any specific prediction made before late 2026 as speculative.

What It Means for Your Money

For US households, the direction of the federal funds rate feeds through to variable-rate mortgages, home equity lines of credit and credit card APRs within one or two billing cycles, and to new fixed mortgage rates over a slightly longer period as bond yields adjust. Savers see online savings account and certificate of deposit rates move in the same direction, often with a lag. A cut tends to make saving marginally less rewarding but can support share prices and, by extension, pension and retirement account balances invested in equities.

The effects reach beyond the US. Changes in US rates influence the dollar’s value against the pound and the euro, which affects the cost of imports and holidays for UK and eurozone consumers. The Bank of England and the European Central Bank do not have to follow the Fed, but a widening or narrowing gap between US and UK or eurozone rates can shift currency markets and the relative appeal of government bonds, nudging both central banks’ own decisions. Investors holding US shares, US dollar bonds or multinational pension funds with US exposure will typically feel any Fed move indirectly through valuations even if they never buy a dollar directly.

Related events

• Previous decision: FOMC Rate Decision, December 2026
• Full FOMC meeting schedule and background: FOMC Rate Decision hub
• Watch the US CPI and non-farm payrolls releases in the weeks before January 27, 2027, since both typically shape the final consensus going into the meeting

Frequently Asked Questions

What time is the January 2027 FOMC decision announced?

The statement is released at 2:00 pm ET, which is 7:00 pm in London, on Wednesday, January 27, 2027, with a press conference from the Fed Chair roughly thirty minutes later.

Will the Fed cut rates in January 2027?

This is not yet known. The decision depends on inflation and employment data through late 2026 and the outcome of the preceding December 2026 meeting, so any forecast published before then should be treated as a possibility rather than a prediction.

What is the current federal funds rate?

The rate in effect ahead of the January 2027 meeting will depend on decisions taken at every FOMC meeting between now and then. Check the Federal Reserve’s own calendar page for the latest confirmed target range.

When is the next FOMC meeting after January 2027?

The FOMC meets roughly eight times a year, with the next scheduled meeting typically falling five to seven weeks later, in March 2027; exact dates are confirmed on the Fed’s published calendar.

Where can I watch the press conference?

The Federal Reserve streams the Chair’s press conference live on its own website, and it is also carried by major financial news broadcasters and wire services.