"While the majority of members voted in favor of maintaining the current rate, one member dissented in favor of a reduction."
Federal Reserve Holds Rates Steady at 3.5% - 3.75% Amid Persistent Inflation
The Federal Open Market Committee (FOMC) voted to maintain the target range for the federal funds rate at 3-1/2 to 3-3/4 percent. The decision was made during a meeting of the Committee, with the accompanying Implementation Note issued on March 18, 2026. While the majority of members voted in favor of maintaining the current rate, one member dissented in favor of a reduction.
Economic Conditions
Economic activity continues to expand at a solid pace, according to available indicators. Job gains have remained low, with the unemployment rate showing little change in recent months. Productivity growth and capital investment are described as strong.
The Committee's assessment notes that uncertainty regarding the economic outlook persists, in part due to developments in the Middle East, though the implications for the U.S. economy remain unclear.
Inflation
Inflation is currently elevated and remains above the Committee's 2 percent target. The Committee noted that supply shocks have contributed to price increases in certain sectors, including energy.
Monetary Policy Decision
The Committee decided to maintain the target range for the federal funds rate at 3-1/2 to 3-3/4 percent. The Committee reaffirmed its policy of maintaining ample reserves. Future adjustments to the target range will be determined by evaluating incoming data, the evolving economic outlook, and the balance of risks. The Committee stated it is prepared to adjust monetary policy if risks emerge that could hinder the achievement of its objectives.
"The Committee is prepared to adjust monetary policy if risks emerge that could hinder the achievement of its objectives."
Voting Summary
The vote to maintain the target range was supported by:
- 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
- Christopher J. Waller
Stephen I. Miran voted against the decision, preferring a 1/4 percentage point reduction.