Financial News: Fed Leaves Interest Rates Unchanged, Highlights 'Uncertain

Fed Leaves Interest Rates Unchanged, Highlights 'Uncertain' Impact Of Iran War

03/18/2026 - 14:14:00 (RTTNews)

(RTTNews) - Following a two-day monetary policy meeting, the Federal Reserve on Wednesday announced its widely expected decision to once again leave interest rates unchanged.

The Fed said it decided to maintain the target range for the federal funds rate at 3.50 to 3.75 percent after also leaving rates unchanged after its last meeting in January.

Most Fed officials voted in favor of keeping rates unchanged, although Fed Governor Stephen I. Miran continued to prefer cutting rates by a quarter point.

The accompanying statement described the implications of the Middle East conflict for the U.S. economy as "uncertain" and said the Fed is attentive to the risks to both sides of its dual goals of maximum employment and inflation at the rate of 2 percent over the longer run.

With regard to the outlook for rates, central bank officials' projections were unchanged from last December, suggesting they expect to cut rates by just a quarter point this year.

Meanwhile, officials upwardly revised their inflation forecasts, with core consumer prices expected to surge by 2.7 percent this year compared to the 2.5 percent jump forecast in December.

The forecast for GDP growth in 2025 was also upwardly revised to 2.4 percent from 2.3 percent, while the forecast for the unemployment rate was unchanged at 4.4 percent.

The statement reiterated that officials will be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the central bank's goals.

The Fed's next monetary policy meeting is scheduled for April 28-29, with CME Group's FedWatch Tool currently indicating a 96.9 percent chance rates will be left unchanged once again.

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