MARCH 23, 2026 – – FED HOLDS RATES STEADY AS THE WAR CREATES UNCERTAINTY
Federal Reserve officials voted 11 to 1 to keep rates in a range of 3.5 percent to 3.75 percent last week. This is the second meeting in a row with no change. They indicated rates may come down later this year despite the rising oil prices threatening to keep inflation above their targeted level of 2 percent.
After the meeting, Fed Chair Powell described the current rate policy as neutral, it does not encourage nor stifle growth. He feels the officials have little room to lower rates unless the economy shows signs of weakening.
New projections indicated the majority of the FOMC’s voting members expect one cut this year, but several thought no reductions will be justifiable this year. Powell emphasized that projections are just that; the data will drive the decision making. Inflation is seen as being firmer than expected, but it is expected to drop over the next two years.