The fed holds, but signals a cut later this year - 19th March 2026

The fed holds, but signals a cut later this year.

On Wednesday, the Federal Reserve held the Fed Funds to 3.50%-3.75%, as had been widely anticipated in the wake of the Iran war. The dot plot which accompanied the announcement showed little change since December but was largely viewed as irrelevant.

The Federal Reserve’s second meeting of 2026 produced a second consecutive hold for the Fed Funds rate at 3.50%-3.75%, despite Donald Trump’s call for an immediate rate cut. The standstill vote was 11-1, with the only dissent from Donald Trump’s recent appointee, Steve Miran, who continued his outlier positioning by backing a 0.25% reduction.  

The Fed’s press release issued after the meeting was word for word the same as the one from January, bar the addition of one sentence even the President could not argue with: “The implications of developments in the Middle East for the U.S. economy are uncertain.” This was a meeting that produced a dot plot, showing Fed board member’s views on rates and other economic factors.  

It showed little change from the December version and arguably has limited significance, given that much will hinge upon the outcome of the Iran war and how long the Strait of Hormuz is largely closed. The Fed chair, Jay Powell, went so far as to say that the plot should be ignored. Media reports point to several Fed members suggesting that this was a month to skip the dot plot.  

Source: Techlink Professional. This is a news bulletin and is up-to-date as of the date of publishing. Please check the publishing date at the top of the article.