The US Federal Reserve announced its second monetary policy decision for 2026 after a two-day Federal Open Market Committee (FOMC) meeting, keeping its benchmark interest rate steady at 3.5% to 3.75% for the second consecutive time on Wednesday, March 18.
The decision was widely expected by investors amid economic uncertainty driven by ongoing tensions in the Middle East, which have pushed energy prices to multi-year highs, prompting the US Federal Reserve to raise its preferred inflation gauge to 2.7% by the end of 2026—up from its December forecast, but slightly below the 2.8% recorded in January.
In a statement, the central bank said that the “implications of developments in the Middle East for the U.S. economy are uncertain.”
