Fed expected to hold rates steady

The Federal Reserve's Federal Open Market Committee (FOMC) is scheduled to meet on March 17-18, 2026. A policy statement is expected on March 18 at 2:00 PM ET, followed by Chair Jerome Powell's press conference at 2:30 PM. Updated economic projections and the dot plot, which illustrates where each FOMC member anticipates rates to go, will be included. This meeting is one of Powell's last opportunities to influence the narrative before his term expires in May 2026. Kevin Warsh is a leading candidate to replace him, viewed as potentially more hawkish but also more open to financial innovation. Geopolitical uncertainty stemming from the conflict in the Middle East and rising energy prices are factors influencing the decision to likely hold rates steady. Updated projections will likely show higher inflation and marginally slower growth in the short term, while still projecting a return to the 2% inflation target. Some anticipate one or two additional Fed cuts later in the year if inflation continues to cool or the labor market weakens further. However, potential cuts might not occur until summer and would be under a new chair if Kevin Warsh is appointed.