WASHINGTON — The Federal Reserve is expected to leave interest rates unchanged when its two-day policy meeting concludes today, as policymakers continue to weigh stubborn inflation pressures against signs of a slowing economy.
The Federal Open Market Committee (FOMC) is scheduled to announce its decision at 2 p.m. Eastern time on March 18, followed by a press conference with Chair Jerome Powell.
Economists and market analysts broadly expect the central bank to hold its benchmark federal funds rate in the current range of 3.50% to 3.75%, extending a pause that began earlier this year.
As the CU Daily has reported, the expected pause comes after the Fed cut rates three times late in 2025 and then held them steady at its January meeting.
‘Wait-and-See Approach’
Financial markets are assigning only a small probability to a rate change at the March meeting, with futures-market indicators showing roughly a 95% likelihood the Fed will keep rates unchanged, according to market-tracking data cited by analysts.
Many economists say the central bank is likely to adopt a wait-and-see approach as it assesses economic data and global developments, especially given the war with Iran and the situation in the Middle East,, which is affecting energy prices. Earlier this year there had been forecasts the Fed would be able to cut rates, but inflation remains above its long-term 2% target, while economic growth has cooled and policymakers are monitoring potential inflation risks tied to higher energy prices and geopolitical tensions.
Along with its policy statement, the Fed will release updated economic projections that could offer clues about when officials might begin easing monetary policy later in 2026. The CU Daily will have coverage.
