Federal Reserve Holds Key Interest Rate Steady Amid Economic Uncertainty

Economic activity continues to expand at a solid pace, according to available indicators. However, job gains have remained low, with the unemployment rate showing little change in recent months. Meanwhile, inflation is currently elevated.

Against this backdrop, the Federal Reserve's Committee has made its latest monetary policy decision, focusing on its dual mandate of maximum employment and price stability.

Policy Decision

The Committee decided to maintain the target range for the federal funds rate at 3-1/2 to 3-3/4 percent.

This decision reflects the Committee's cautious stance amidst persistent economic uncertainties and its ongoing commitment to its long-term objectives.

Economic Outlook and Objectives

The Committee's long-term objectives include achieving maximum employment and a 2 percent inflation rate.

Uncertainty regarding the economic outlook persists, and the implications of Middle East developments for the U.S. economy are unclear. The Committee is focused on risks related to both employment and inflation goals.

Forward Guidance

Future adjustments to this range will be determined by carefully assessing incoming data, the evolving economic outlook, and the balance of risks. The Committee is dedicated to supporting maximum employment and restoring inflation to its 2 percent target.

The Committee will continue to monitor incoming information for its implications on the economic outlook. It stands prepared to adjust monetary policy as necessary if risks emerge that could hinder the achievement of its objectives. Assessments will consider labor market conditions, inflation pressures and expectations, and financial and international developments.

Voting Summary

• For maintaining the rate: Jerome H. Powell (Chair), John C. Williams (Vice Chair), Michael S. Barr, Michelle W. Bowman, Lisa D. Cook, Beth M. Hammack, Philip N. Jefferson, Neel Kashkari, Lorie K. Logan, Anna Paulson, and Christopher J. Waller.
• Against (preferred a 1/4 percentage point reduction): Stephen I. Miran.

The Implementation Note was issued on March 18, 2026.