Background and Relevance of the Meeting
The first meeting of the US Federal Reserve’s Open Market Committee for 2026 commenced in Washington, D.C., against the backdrop of an economy that performed relatively well in 2025, despite trade tariff fluctuations, price hike concerns, crackdowns on foreign workers, and threats to the central bank’s independence.
Economic Performance in 2025
Following a dip in the spring, economic growth regained momentum by year-end, reaching an estimated 2.5% growth rate—equal to 2024’s performance. The Consumer Price Index (CPI) inflation rate for 2025 decreased to 2.7%, down from 2.9% in 2024.
Labor Market Challenges
One of the key shortcomings in 2025’s economic performance was the labor market, with only 584,000 new jobs created—an average of 49,000 per month—compared to the monthly average of 168,000 and a total of 2 million jobs created in 2024. This indicates a slowdown in job market growth not seen in the past five years.
- By December 2025, the unemployment rate rose to 4.4% from 4.1% in January 2025.
- Most new jobs created in 2025 were in healthcare and hospitality sectors, while the government sector lost 277,000 jobs due to federal workforce cuts.
- A significant disappointment was the continued job losses in the manufacturing sector, with 8,000 jobs lost in December 2025—a trend since December 2024.
- There was also disappointment regarding the expectation that increased anti-immigrant raids would boost job opportunities for native-born Americans. The rising unemployment rate throughout 2025 revealed that these benefits have yet to materialize.
Key Figures and Context
*Analyst and international consultant, former director of the UN Economic Commission for Latin America (ECLAC) office in Washington. Economy and finance commentator for CNN en Español TV and radio, UNIVISION, TELEMUNDO, and other media outlets.
