Fed holds rates steady
The Federal Reserve left interest rates unchanged at its March meeting and now projects only one rate cut in 2026 — a shift to a more cautious, wait‑and‑see stance amid geopolitical risk. Markets reacted with caution as officials warned that the war in Iran and potential energy price shocks could stoke inflation and undermine growth. (nytimes.com (finance.yahoo.com))
FOMC voting was 11–1, with Governor Stephen Miran the lone dissenter calling for a 25‑basis‑point cut. (bloomberg.com) The committee’s target federal‑funds range remains 3.50%–3.75%. (cnbc.com) The Summary of Economic Projections’ “dot plot” shows a median federal‑funds rate of 3.4% at the end of 2026, and the distribution shifted toward fewer cuts compared with December. (cnbc.com) Chair Jerome Powell reported a 4.4% unemployment rate in February and said total PCE inflation rose 2.8% year‑over‑year while core PCE rose 3.0%; the SEP’s median projects total PCE at 2.7% this year and 2.2% next year. (federalreserve.gov) Major U.S. equity indexes fell: the Dow lost 768.11 points (about 1.63%), the S&P 500 fell 1.36% and the Nasdaq dropped 1.46% on the session. (cnbc.com) The yield on the 10‑year Treasury moved up to roughly 4.27% after the policy release. (tradingeconomics.com) Brent crude remained above $100 a barrel on March 18 amid Middle East supply concerns, and benchmark Brent reached about $110.66 on March 19. (invezz.com)
