The Fed held rates steady at 3.5%-3.75% on March 18, 2026, citing inflation and economic strength.

The U.S. Federal Reserve held its key interest rate steady at 3.5% to 3.75% on March 18, 2026, as expected, with Chair Jerome Powell citing persistent inflation and economic resilience as reasons for maintaining the current policy. The decision reflects a data-dependent approach, with no immediate plans for rate changes. Markets reacted with early volatility, driven by global tensions, rising oil prices, and geopolitical uncertainty in the Middle East. Other developments included U.S.-China trade talks in Paris, airline executives urging Congress to restore DHS funding, and a federal judge blocking a proposed change to childhood vaccine guidelines.