Divided Federal Reserve officials at their January meeting indicated that further interest rate cuts should be paused for now and could resume later in the year only if inflation cooperates.

While the decision to hold the central bank’s benchmark rate steady mostly was met with approval, the path ahead appeared less certain, with members conflicted between fighting inflation and supporting the labor market, according to minutes released Wednesday from the Jan. 27-28 Federal Open Market Committee meeting.

“In considering the outlook for monetary policy, several participants commented that further downward adjustments to the target range for the federal funds rate would likely be appropriate if inflation were to decline in line with their expectations,” the meeting summary said.

However, meeting participants disagreed on where policy should head, with officials debating over whether the focus should be more on fighting inflation or supporting the labor market.

“Some participants commented that it would likely be appropriate to hold the policy rate steady for some time as the Committee carefully assesses incoming data, and a number of these participants judged that additional policy easing may not be warranted until there was clear indication that the progress of disinflation was firmly back on track,” the minutes said.

Moreover, some even entertained the notion that rate hikes could be on the table and wanted the post-meeting statement to more closely reflect “a two-sided description of the Committee’s future interest rate decisions.”

Such a description would have reflected “the possibility that upward adjustments to the target range for the federal funds rate could be appropriate if inflation remains at above-target levels.”

The Fed reduced its benchmark borrowing rate by three-quarters of a percentage point in consecutive cuts in September, October and December. Those moves put the key rate in a range between 3.5%-3.75%.

The meeting was the first for a new voting cast of regional presidents, at least two of whom, Lorie Logan of Dallas and Beth Hammack of Cleveland, have publicly said they think they Fed should be on hold indefinitely. Both have said they see inflation as a continuing threat and should be the focus of policy now. All 19 governors and regional presidents participate at the meeting, but only 12 vote.

With the Fed already split along ideological lines, the fissure could grow deeper if former Governor Kevin Warsh is confirmed as the next central bank chair. Warsh has spoken in favor of lower rates, a position also supported by current Governors Stephen Miran and Christopher Waller. Both Waller and Miran voted against the January decision, preferring instead another quarter-point cut. Current Chair Jerome Powell‘s term ends in May.

The meeting minutes do not identify individual participants and featured an array of characterizations to describe positions, rotating between “some,” “a few,” “many” and even featured two rare references to “a vast majority.”

Participants generally expected inflation to come down through the year, “though the pace and timing of this decline remained uncertain.” They noted the impact tariffs were having on prices and said they expected the impact to wane as the year goes by.

“Most participants, however, cautioned that progress toward the Committee’s 2 percent objective might be slower and more uneven than generally expected and judged that the risk of inflation running persistently above the Committee’s objective was meaningful,” the document said.

At the meeting, the rate-setting FOMC adjusted some of the language in its post-meeting statement. The changes noted that the risks to inflation and the labor market had come more closely into balance, softening prior worries over the employment picture.

Since the meeting, labor data has been a mixed bag, with indications that private sector job creation is slowing further and that the meager growth is coming almost entirely from the health-care sector. However, the unemployment rate dipped to 4.3% in January and nonfarm payroll growth was stronger than expected.

On inflation, the Fed’s key personal consumption expenditures prices metric has been mired around 3%. However, a report last week showed that the consumer price index when excluding food and energy prices was at its lowest in nearly five years.

Futures traders are placing the best bet for the next cut to come in June, with another in September or October, according to the CME Group’s FedWatch gauge.

• XRP has held strong near $1.40 despite mixed market signals.
• Key resistance levels to watch are $1.50, $1.54, and $1.91.
• Arizona has proposed to include XRP in a state-managed crypto reserve fund.

XRP cryptocurrency has held steady above $1.40, showing resilience despite a broadly cautious market.

Recent developments in US policy have added a fresh layer of optimism for XRP enthusiasts.

Arizona advances bill to include XRP in state reserve

Arizona lawmakers are moving forward with legislation that could formally include XRP in a state-managed digital assets fund.

The proposal seeks to create a strategic reserve for digital currencies obtained through seizures or confiscations.

XRP, alongside Bitcoin (BTC), is explicitly listed as an eligible asset.

🚨BREAKING: ARIZONA ADVANCES BILL TO ADD XRP TO OFFICIAL STATE DIGITAL ASSET RESERVE 🇺🇸🔥

Arizona’s Digital Assets Strategic Reserve Fund bill (SB1649) just CLEARED the Senate Finance Committee in a 4–2 vote — and it explicitly includes $XRP in the RESERVE. 👀

The bill now… pic.twitter.com/2x8uVH6LXD

— Diana (@InvestWithD) February 17, 2026

The bill recently passed a key Senate committee in a 4-2 vote, marking a significant step forward.

If enacted, the fund would be managed by the state treasurer with strict custodial oversight.

This move would make Arizona one of the first US states to formally reference XRP in a government financial framework.

For XRP holders, this development is largely symbolic.

The state would not be directly purchasing XRP with taxpayer money, but inclusion in the reserve adds credibility.

It reinforces XRP’s reputation as a functional and settlement-oriented digital asset rather than just a speculative token.

Market activity signals caution

XRP’s short-term price action has been mixed.

The coin is supported around $1.40 to $1.44, creating a key floor that traders are watching closely.

Exchange outflows suggest accumulation by larger holders, while smaller whales have added to their balances, hinting at potential upward pressure.

Technical indicators show both bullish and bearish signals.

Momentum oscillators suggest limited buying activity in the short term, but longer-term smart money metrics point to possible gains.

Patterns on the charts indicate that a break below $1.42 could trigger a short-term pullback toward $1.12.

At the same time, if support holds, traders could see upside targets near $1.91 and $2.13.

XRP has been rangebound for the past month, but the combination of policy developments and structural market accumulation could push it higher.

XRP price prediction

Policy developments in Arizona, combined with accumulation patterns and technical support, may give XRP the momentum it needs to challenge its next resistance levels.

Traders should watch the $1.40–$1.44 support zone closely.

A strong hold here could set the stage for a breakout.

The resistance levels to monitor are $1.50 and $1.54 in the near term.

Beyond that, the next targets are $1.67 and $1.91.

These levels align with smart money accumulation and historical trading ranges.

A sustained move above $2.00 could signal a return of broader bullish sentiment.

Overall, XRP’s price is poised in a delicate balance.

Short-term caution is warranted, but medium-term prospects look promising.

An activist Riot Platform shareholder is pressing the crypto mining company to accelerate its pivot to high-performance computing (HPC) and artificial intelligence.

In a Wednesday letter to executives, Starboard Value, which holds about 12.7 million shares of Riot, said that the company could generate between $9 billion to $21 billion in equity value contribution from AI/HPC data centers in Texas. The shareholder said that “time is of the essence,” stressing urgency in getting “more material deals completed” as it moves deeper into AI and HPC.

“With 1.4 [gigawatts] of gross capacity remaining to be monetized, Riot is in an enviable position – but it must execute with excellence and urgency,” said Starboard. “We believe Riot should be able to attract high-quality tenants for tier-3 data centers with terms similar to or better than the peer transactions announced towards the end of 2025.”

Starboard referred to Riot’s primary sites in Corsicana and Rockdale, Texas, where other crypto miners also operate due to low energy costs and friendly regulations.

At Wednesday’s Nasdaq market open, Riot’s share price surged and were up by almost 6%, at the time of publication. Industry tracker CoinShares Bitcoin Mining ETF was down less than 1%, by comparison.

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“The recently announced transaction with Advanced Micro Devices […] is a positive signal and confirms our views regarding the intrinsic value of Riot’s key sites, but it is a small proof of concept deal, and we, like you, expect significantly more,” said Starboard, referring to a data center lease and services agreement announced in January.

Many mining companies pivoting away from crypto

Riot Platforms is not the only crypto company shifting some of its operations into AI and HPC amid increasing mining difficulty and other costs. CleanSpark, MARA Holdings, Core Scientific, Hut 8, and TeraWulf repurposed some of their infrastructure or announced similar plans in a move toward AI.

Cango, another Bitcoin miner, sold $305 million worth of its BTC holdings last week in part to fund its planned expansion into AI and HPC.

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