Powell's press conference, Big Tech earnings, U.S. dollar volatility and more in Morning Squawk

• Two Fed governors (Stephen Miran and Christopher Waller) dissented and pushed for a quarter-point rate cut, while Powell avoided commenting on the ongoing criminal probe into his congressional testimony
• Tesla posted mixed Q4 results and announced it will discontinue Model S and X production to focus on Optimus humanoid robots, while planning to invest around $2 billion in Musk's xAI startup
• The U.S. dollar index has fallen over 10% in the past 12 months, prompting Treasury Secretary Bessent to clarify that the U.S. would 'absolutely not' intervene in currency markets despite recent volatility

MARKET SUMMARY: Fed Holds Rates, Big Tech Mixed, Dollar Volatility

Federal Reserve Decision:

The Federal Reserve held interest rates steady as expected on January 28, 2026. Chair Jerome Powell described the economy as being on solid footing and stated current policy is not "significantly restrictive." Two governors—Stephen Miran and Christopher Waller—dissented, advocating for a quarter-point cut. Powell declined to comment on a criminal probe related to his congressional testimony but addressed a key legal case involving Fed governance, calling it "perhaps the most important in the Fed's 113-year history." The Fed confirmed cooperation with grand jury subpoenas.

Big Tech Earnings:

Meta beat Q4 expectations and issued strong sales guidance, though its Reality Labs division reported a $6.02 billion operating loss (wider than the $5.67 billion forecast), with year-over-year losses up 21%. Microsoft tumbled 7% after-hours despite beating estimates, due to cooling cloud growth and light operating margin guidance.

Tesla:

Tesla missed Q4 earnings and revenue expectations, sending shares down 5%. CEO Elon Musk announced plans to discontinue Model S and X production, redirecting the Fremont factory toward Optimus humanoid robots. Tesla also disclosed plans to invest approximately $2 billion in Musk's xAI startup.

Currency Markets:

The U.S. dollar recovered after Treasury Secretary Scott Bessent denied reports of potential market intervention, stating the U.S. would "absolutely not" step in. The dollar index has fallen over 10% in the past 12 months, trading near multiyear lows.

Other Developments:

Several major banks and corporations pledged support for Trump savings accounts, with contributions announced for eligible employees and children.