The Federal Reserve announced it will keep interest rates steady for now. In a statement, Chairman Jerome Powell said the decision was made despite increased uncertainty caused by the war in the Middle East and ongoing investigations by the Department of Justice. However, Powell vowed to lower rates again if inflation – particularly goods inflation boosted by tariffs – starts to decrease.
Key points:
– Interest rates remain unchanged
– Federal Reserve expects one rate cut this year
– Uncertainty due to Middle East conflict is acknowledged
– Powell emphasizes need for progress in reducing inflation
Source: https://www.bloomberg.com/news/articles/2026-03-18/fed-holds-rates-steady-still-projects-one-rate-cut-in-2026