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The Federal Reserve (FRS) announced Wednesday, March 18, 2026, that it will maintain its benchmark interest rate target in a range of 3.5% to 3.75%. This decision comes after a two-day meeting of the committee.
The last adjustments to U.S. Interest rates occurred in September, October, and December of last year, when the benchmark rate was lowered by 0.25 percentage points each time. These moves signaled a shift in the central bank’s approach to monetary policy.
From March 2022 through July 2023, the FRS consistently raised its benchmark interest rate in an effort to bring the annual inflation rate down to 2%. The rate peaked at 5.25-5.5%. The first reduction came in September 2024, with a decrease of 0.5 percentage points, followed by a further 0.25 percentage point cut in November. The rate remained unchanged through September 2025.
Recent data indicates that the annual inflation rate in the U.S. Was 2.4% in February, holding steady compared to January. The decision to hold rates steady suggests the committee is carefully monitoring inflation data as it weighs future policy adjustments.
