Federal Reserve Holds Interest Rates Steady, Still Projects One Rate Cut in 2026
Fed maintains federal funds rate at 3.50%-3.75% and forecasts one 25-basis-point cut in 2026 amid inflation pressures linked to Middle East conflict, officials said.
- Federal Reserve officials held rates steady Wednesday at about 3.6% and projected one key rate cut in 2026.
- The Iran–Israel war pushed oil and fuel costs higher, with Brent crude jumping above $109 a barrel Wednesday and February payrolls falling by 92,000 amid a 0.7% rise in the Producer Price Index.
- Fed projections show inflation easing to 2.7% by year-end, with core PCE revised up to 2.7% and the unemployment rate steady at 4.4%, while U.S. economic growth is projected at 2.4%.
- Markets reacted immediately as stocks fell and gasoline prices hit $3.84 a gallon on March 18, while Fed Governor Stephen Miran dissented favoring a quarter-point cut.
- Looking ahead, officials project inflation returning toward target, with expectations to fall to 2.2% in 2027 and hit 2% in 2028, despite leadership uncertainty with Powell's term ending soon.
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Federal Reserve leaves interest rates unchanged | KNX News 97.1 FM
KNX News 97.1 FM
Fed Holds Rates Steady as Labor Market Softens, Iran War Adds Uncertainty
WASHINGTON – The Federal Reserve on Wednesday left interest rates unchanged, opting to hold its benchmark federal funds rate at 3.5 percent to 3.75 percent as policymakers weighed a softening labor market, persistent inflation, and growing uncertainty tied to the war in Iran. The decision came after the central bank held rates steady in January, [...] The post Fed Holds Rates Steady as Labor Market Softens, Iran War Adds Uncertainty appeared fir…
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