Senators Are Talking But No Shutdown Deal Sighted | Balance of Power 01/28/26

Summary

Balance of Power covers the Fed's decision to hold rates, tech earnings after the bell, a potential government shutdown over DHS funding, and political debate over Venezuela and New York City tax policy. The Fed held rates with two dissents while markets were mixed; Tesla and Meta rose after hours, but Microsoft fell on slowing cloud growth and heavy AI capex. Precious metals rallied as investors hedged dollar weakness, and PIMCO's Tiffany Wilding argued for diversifying overweight dollar exposure. Lawmakers remained divided on shutdown strategy and immigration enforcement, and Wendy Sherman doubted the Venezuela operation's oil objectives.

• Fed holds benchmark rate with two dissents favoring cuts.
• Microsoft falls after earnings on slowing cloud growth and high AI capex.
• Tesla and Meta rise after hours; Tesla discloses xAI investment and AI framework.
• Gold and silver rise as investors hedge dollar weakness and seek safety.
• PIMCO's Tiffany Wilding sees dollar remaining reserve currency but favors diversification.
• Government shutdown risk rises over DHS funding and ICE reforms.
• Venezuela hearing focuses on oil and regime-change concerns; Exxon and peers wary of Venezuela oil investment.
• NYC Mayor Mamdani proposes tax hikes on wealthy; Rep. Lawler warns of outmigration.