Fed keeps policy rate at 3.5%–3.75% on March 18; SEP implies slower easing

On 18 March, the Federal Reserve left the federal funds target range unchanged at 3.5%–3.75% and said inflation remains above its 2% goal, limiting the case for near-term cuts. Its updated projections still place 2026 PCE inflation at 2.7% and the policy rate around 3.4%, pointing to only gradual easing. The Fed also highlighted elevated uncertainty, including potential spillovers from Middle East developments.