Federal Reserve Maintains Interest Rates Unchanged, Expects One 0.25 Percentage Point Rate Cut in 2026

Gate News reports that on March 19, the Federal Reserve kept interest rates unchanged and expects inflation to rise while unemployment remains stable. They forecast only one rate cut this year. These predictions were made as officials assess the economic risks posed by the wars in the US, Israel, and Iran. The new forecast shows that by the end of this year, the Fed will only cut rates by 0.25 percentage points, without specifying the timing of this move. This view aligns with previous forecasts and contradicts Trump’s call for significant rate cuts. The Fed statement said, “The changing situation in the Middle East is uncertain in its impact on the US economy.” It also noted that the unemployment rate remains stable. The new interest rate and economic forecasts suggest that the Fed has largely excluded the impact of the oil crisis, and policymakers still expect to cut rates this year. They project inflation will reach 2.2% by the end of 2027, close to the central bank’s 2% target. Notably, no policymakers believe rates need to be raised further by the end of this year, though one official expects one rate hike by 2027.