Federal Reserve Chair Jerome Powell pauses while speaking during a press conference following the Federal Open Markets Committee meeting at the Federal Reserve on Jan. 28, 2026 in Washington, DC.
As expected, the U.S. Federal Reserve left its key interest rate steady in a range between 3.5%-3.75%.
But what investors were really keeping their eyes peeled for were signs of political fingerprints on the independent central bank.
For the most part, the meeting and press conference focused on the U.S. economy and labor market — which, encouragingly, the Fed thinks have improved since the last meeting.
But Powell did bring up the legal case against Fed Governor Lisa Cook, who has been accused of mortgage fraud, a claim which she denies. The ruling will decide if U.S. President Donald Trump can fire her.
"That case is perhaps the most important legal case in the Fed's 113-year history," Powell said Wednesday during his post-Fed meeting press conference. "As I thought about it, I thought it might be hard to explain why I didn't attend."
Powell also left some advice to the next Fed chair. "Don't get pulled into elected politics," Powell said. "Don't do it."
Tech megacap earnings also dominated the news overnight. Meta , Microsoft and Tesla reported results after markets closed. Even though all beat expectations for earnings per share and revenue, investors were selective with their rewards.
In extended trading, Meta shares popped as much as 10% on its stronger-than-expected forecast for first-quarter revenue. Tesla stock added roughly 1% even though it experienced its first annual revenue decline in 2025. Last, Microsoft fell more than 6% on slowing cloud growth and light margin guidance.
Asian chip giants also had expectation-busting results. SK Hynix on Wednesday reported a record full-year profit for 2025, while Samsung Electronics' fourth-quarter earnings hit an all-time quarterly high, according to the company on Thursday. Both firms have memory chip shortages to thank.
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