Federal Reserve Chair Jerome Powell announced that the Federal Open Market Committee (FOMC) has decided to leave its benchmark interest rate unchanged, maintaining the federal funds rate at 3.5% to 3.75%. The decision, reached in an 11-1 vote on March 18, 2026, reflects the Fed’s assessment that the U.S. economy continues to expand at a solid pace while inflation remains elevated.

Powell noted that unemployment has stabilized near 4%, indicating a relatively strong labor market, though job growth has shown signs of slowing. Inflation, currently around 3%, remains above the Federal Reserve’s long-term target of 2%, prompting policymakers to maintain a cautious stance.

During his press conference, Powell emphasized the Fed’s dual mandate of promoting maximum employment and stable prices. He highlighted that ongoing global uncertainties, including tensions in the Middle East, are contributing to a more measured approach as the central bank evaluates future policy adjustments.

The decision to hold rates steady signals a wait-and-see strategy as the Fed continues to monitor economic indicators and inflation trends. Analysts suggest that while no immediate changes are expected, policymakers remain prepared to adjust rates if conditions shift significantly in the coming months.