Washington: The US Federal Reserve has left its key interest rate unchanged at its first policy meeting of 2026, citing continued uncertainty over the economic outlook. The central bank has maintained the benchmark overnight lending rate within a range of 3.50% to 3.75%.

According to Qatar News Agency, the Fed noted that the unemployment rate has shown signs of stabilizing, while job gains remain modest. The decision to hold rates was approved by 10 committee members, with two dissenting, who argued in favor of a 25-basis-point cut.

Officials indicated that uncertainty surrounding the economic outlook remains elevated, reinforcing the cautious approach to monetary policy. The move follows a series of interest rate reductions in 2025, with the Fed delivering its third rate cut at its final meeting in December.

Markets are now watching closely for signals on the timing and scale of any future easing, as policymakers balance slowing labor market conditions against lingering inflation risks.